S&P Assigns Nu BB- International Rating, Highlights Strong Growth and Better Efficiency
- Growth prospects supported by expanding customer base (85 million customers in Latin America as of July 2023)
- Solid capital structure (Basel Index of 20.2% in Brazil in Q2’23)
- Efficiency rate
- Improvement in financial metrics thanks to strong growth and better efficiency
- None.
The rating is the same given to
SÃO PAULO--(BUSINESS WIRE)--
S&P Global Ratings assigned a BB- international rating to Nu Financeira and Nu Holdings. The main drivers for the decision were the growth prospects supported by an expanding customer base (85 million customers in
S&P is one of the most relevant credit rating agencies worldwide, and its evaluation reflects companies’ capability to meet their financial obligations on time. It reflects trustworthiness and reputation by assessing the current solidity and future expectations of the entities.
“The rating on Nubank reflects an improvement of its financial metrics thanks to strong growth and better efficiency. In September 2022, Nubank achieved breakeven at the holding level and has been reporting stronger results since then,” states the S&P report.
“S&P’s rating is a statement of our long-term vision, a reinforcement that our business model is solid and on the right path. Currently one in every two Brazilian adults is a customer, so we see a large avenue of growth within our own base. There is great potential in gaining principality and further strengthening our position, as Nu’s market share in many of the verticals we operate is still minimal compared to incumbents,” says David Vélez, Nu’s founder and CEO.
Consistent growth
Nu currently serves over 85 million customers in
In the report, S&P stresses Nu’s increasing financial margin, stronger operational efficiency, and better capacity to manage expenses with credit provisions, despite increasing risks in the sector since 2022.
“We expect that the entity will continue improving its financial performance through its sticky and large customer base and through the gradual diversification of revenue sources. We expect results to improve during 2023 and 2024. Moreover, we expect Nubank to remain a leading digital nonbank financial company in
Growing funding base
Nu’s funding through deposits has been a growing strength, supported by an expanding customer base. With the launch of Cuenta Nu in
Responsible, secured credit has also been a growing source of funding. Recent launches include options such as payroll loans for public servants in
Both products offer competitive rates for customers, as Nu’s fully digital and efficient operation allows it to keep operational costs ~
Additionally, Nu’s products remove complexity from otherwise bureaucratic options and contribute to Nu’s responsible credit philosophy. The company’s credit portfolio has also expanded internationally with the recent launch of personal lending in
Nu’s successful lending strategy at a holding level is supported by its large customer portfolio, best-in-class credit underwriting platform, strong capital base, and ample liquidity position. In Q2’23, the company registered a
brAA+ rating in
In June, S&P upgraded Nu Financeira’s local rating in
About Nu
Nu is one of the world’s largest digital financial services platforms, around 85 million customers across
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Investors Relations
Jorg Friedemann
investors@nubank.com.br
Media Relations
Leila Suwwan
press@nubank.com.br
Source: Nu