Published: 2024-06-11 09:00:00 CEST
Eleving Group
Inside information

Fitch upgrades Eleving Group to 'B' with a stable outlook

Fitch Ratings has upgraded Eleving Group's Long-Term Issuer Default Rating (IDR) from 'B-' to 'B' with a stable outlook. Also, the Group's senior secured debt rating was upgraded to 'B' with a Recovery Rating 'RR4'.

As stated in Fitch’s report, the key drivers for the rating update were improvements in the Group’s performance in the last 24 months, including lower leverage, a longer record of business model stability, and access to debt capital markets.

In Fitch's view, Eleving Group's progress in corporate governance and initiatives in preparation for a possible IPO, announced in April 2024, are credit-positive because they could further strengthen creditor rights. Eleving Group has already established an international supervisory board and plans to publish a dividend policy within the coming weeks. Fitch believes this builds on previous progress following the bond listing in Frankfurt and Riga.

“Rating upgrade marks an important milestone for the company and is a great evaluation of recent company's achievement and strategy execution - excellent business results, strengthened company's corporate governance and successful performance in capital markets. It should signal to our stakeholders that we are on the right path, enhancing our resilience and growth prospects. We are committed to continuing this positive momentum, ensuring that we deliver sustainable value, maintain a healthy business model, and reward the trust of our investors and partners,” comments Modestas Sudnius, the CEO of Eleving Group.

Eleving Group has been partnering with Fitch Ratings since 2019.

About Eleving Group

Eleving Group has driven innovation in financial technology around the world since its foundation in Latvia in 2012. As of today, the group operates in 16 markets and 3 continents, encouraging financial inclusion and upward social mobility in underserved communities around the globe. Eleving Group has developed a multi-brand portfolio for its vehicle and consumer finance business lines, with around 2/3 of the portfolio comprising secured vehicle loans and mobility products, with Mogo as the leading brand, and around 1/3 of the portfolio including unsecured consumer finance products, with Kredo and Tigo as the segment’s flagship brands. Currently, 57% of the group's portfolio is located in Europe, 30% in Africa, and 13% in the rest of the world.

The Group's historical customer base exceeds 660,000 customers worldwide, while the total volume of loans issued goes beyond EUR 1.7 billion. With headquarters in Latvia, Lithuania, and Estonia and a governance structure in Luxembourg, the Group ensures efficient and transparent business management, powered at the operational level by 2718 employees. For two consecutive years, the Group was listed among Europe’s 1000 fastest-growing companies, as published by the Financial Times in 2020 and 2021.

The group closed Q1 of 2024 with strong financial results—its adjusted EBITDA reached EUR 22.0 mln, revenues EUR 51.8 mln, and adjusted net profit before FX EUR 7.8 mln. Eleving Group’s net portfolio landed at EUR 330.5 million.