Fitch upgrades rating to BBB+

Upgrade reflects the growth and consolidation of the digital bank business model

São Paulo, June 15, 2021 – After many positive operational results, the digital bank Agibank has had its rating upgraded by Fitch Ratings, from BBB to BBB+(bra), with stable long-term outlook (report in its entirety). Furthermore, the rating of the first financial bond issuing has also had its rating upgraded to BBB+(bra).

The upgrade considers factors such as the institution’s corporate governance, asset quality, funding diversification and stability of earnings indicators in general throughout the previous years. “The recognition with the upgrade of our risk rating is the result of a substantial improvement of our credit portfolio quality, the gradual diversification of funding avenues and the strategy of providing products and services to attend the real necessities of our target market”, says Thiago Souza Silva, Agibank’s CFO & IRO.

Agibank has consolidated its business model and grown in its main business fronts, reaching over 760 hubs throughout Brazil and increasing the customer base, which has surpassed 3.0 million people. In addition, has strengthened the credit portfolio, growing 47.6% in 1Q21 y/y, and significant reduction in defaulting, which has gone from 26.6% of the gross credit portfolio in 1Q20 down to 8.7% in March 2021.

“The improvement of our rating shows that we’re on the right track to expand the reach of the Brazilian population for financial products and services without bureaucracy, uniting digital and physical quickly and simply, in a sustainable and safe manner. The R$ 400 million investment from Vinci Partners has helped to put many plans in effect and elevate our omnichannel strategy, expanding our network of Hubs throughout Brazil and developing new financial and non-financial solutions”, comments Marciano Testa, founder and CEO of Agibank.