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 Latin America as of July 2023), the company’s solid capital structure (Basel Index of 20.2% in Brazil in Q2’23), and efficiency rate (35.4% also in Q2'23). BB- is the same rating given to Brazil sovereign and some of the country’s largest financial institutions.
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 and has been reporting stronger results since then”, states S&P.
“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.
Read more about the rating and Nubank’s growth strategy in our Newsroom.
