ABSTRACT

The determining factors of credit rating of fish farmers’ cooperative societies were investigated in Delta State, Nigeria. Random selection of 180 respondents was achieved with the use of a multi–stage sampling method. Primary data were elicited using a structured questionnaire. Collected data were subjected to analysis with the use of descriptive and inferential statistics. Result shows that fish farmers’ credit rating was 56%. Furthermore, income of fish farmers and the revenue base of cooperative societies were important predictors of credit rating in cooperative societies. Majority of the surveyed fish farmers’ cooperative societies possessed excellent capacity to repay loans to financial institutions, sustained profile of revenue growth, capacity to generate annual surplus, high investment in capital assets and good credit rating reports from creditors. The paper recommended that credit institutions should extend credit to fish farmer cooperators on the basis of their good credit worthiness status. The current study has deepened our knowledge on the methodology for determining credit rating of cooperative fish farmers. It has implications for credit financing of fish farming and the development of the fisheries sub-sector in Nigeria.