Fitch Ratings has affirmed the Support Ratings (SRs) and Support Rating Floors (SRFs) of 10 Nigerian Banks. They are Zenith Bank Plc (Zenith), FBN Holdings Plc (FBNH), First Bank of Nigeria Ltd (FBN), United Bank for Africa Plc (UBA), Guaranty Trust Bank Plc (GTB), Access Bank Plc (Access), Diamond Bank Plc (Diamond), Fidelity Bank Plc (Fidelity), Union Bank of Nigeria Plc (Union) and First City Monument Bank Limited (FCMB).
The rating actions follow Fitch’s revision of the Outlook on Nigeria’s Long-term Issuer Default Ratings (IDRs) to Negative from Stable.
Fitch has also affirmed the IDRs and National Ratings of six banks, namely FBN, UBA, Diamond, Fidelity, Union and FCMB. The Outlooks on these Long-term IDRs remain Stable. These banks’ IDRs and National Ratings are driven by the probability of sovereign support, as indicated by their SRFs.
The National Ratings of Stanbic IBTC Bank Plc (SIBTC) and Stanbic IBTC Holdings Plc (SIBTCH) are unaffected by the sovereign rating action, as their ‘AAA(nga)’ ratings are based on the support that the bank and the holding company derive from Standard Bank Group Limited (SBG; BBB/Negative).
The Viability Ratings (VRs) of Fitch-rated Nigerian banks are unaffected by the sovereign rating action. Therefore, the IDRs and National Ratings of Zenith, FBNH, GTB and Access are unaffected, as these are driven by the banks’ standalone strengths, as indicated by their VRs.
Here is a breakdown of the rating
FBN
Long-term IDR: affirmed at ‘B+’; Stable Outlook
Short-term IDR: affirmed at ‘B’
National Long-term rating: affirmed at ‘A+(nga)’
National Short-term rating: affirmed at ‘F1(nga)’
Viability Rating: unaffected at ‘b’
Support Rating: affirmed at ‘4’
Support Rating Floor: affirmed at ‘B+’
FBN Finance Company BV’s subordinated notes: unaffected at ‘B-‘/ ‘RR6’
FBNH
Long-term IDR: unaffected at ‘B’; Stable Outlook
Short-term IDR: unaffected at ‘B’
National Long-term rating: unaffected at ‘A(nga)’
National Short-term rating: unaffected at ‘F1(nga)’
Viability Rating: unaffected at ‘b’
Support Rating: affirmed at ‘5’
Support Rating Floor: affirmed at ‘No Floor’
Zenith
Long-term IDR: unaffected at ‘B+’; Stable Outlook
Short-term IDR: unaffected at ‘B’
National Long-term rating: unaffected at ‘AA-(nga)’
National Short-term rating: unaffected at ‘F1+(nga)’
Viability Rating: unaffected at ‘b+’
Support Rating: affirmed at ‘4’
Support Rating Floor: affirmed at ‘B+’
Global medium term note programme unaffected at ‘B+’ /’RR4’/’B’
Senior unsecured notes: unaffected at ‘B+’/’RR4’
UBA
Long-term IDR: affirmed at ‘B+’; Stable Outlook
Short-term IDR: affirmed at ‘B’
National Long-term rating: affirmed at ‘A+(nga)’
National Short-term rating: affirmed at ‘F1(nga)’
Viability Rating: unaffected at ‘b-‘
Support Rating: affirmed at ‘4’
Support Rating Floor: affirmed at ‘B+’
Access
Long-term IDR: unaffected at ‘B’; Stable Outlook
Short-term IDR: unaffected at ‘B’
National Long-term rating: unaffected at ‘A-(nga)’
National Short-term rating: unaffected at ‘F2(nga)’
Viability Rating: unaffected at ‘b’
Support Rating: affirmed at ‘4’
Support Rating Floor: affirmed at ‘B’
Access Finance BV’s senior notes, guaranteed by Access Bank: unaffected at ‘B’/’RR4’
Subordinated notes: unaffected at ‘B-‘/ ‘RR6’
GTB
Long-term IDR: unaffected at ‘B+’; Stable Outlook
Short-term IDR: unaffected at ‘B’
National Long-term rating: unaffected at ‘AA-(nga)’
National Short-term rating: unaffected at ‘F1+(nga)’
Viability Rating: unaffected at ‘b+’
Support Rating: affirmed at ‘4’
Support Rating Floor: affirmed at ‘B’
GTB Finance BV’s senior notes, guaranteed by Guaranty Trust Bank: unaffected at ‘B+’/’RR4’
GTB Finance BV’s global medium-term note programme, guaranteed by Guaranty Trust Bank: unaffected at ‘B+’/’RR4’/’B’
Diamond
Long-term IDR: affirmed at ‘B’; Stable Outlook
Short-term IDR: affirmed at ‘B’
National Long-term rating: affirmed at ‘BBB+(nga)’
National Short-term rating: affirmed at ‘F2(nga)’
Viability Rating: unaffected at ‘b-‘
Support Rating: affirmed at ‘4’
Support Rating Floor: affirmed at ‘B’
Senior unsecured notes: affirmed at ‘B’/’RR4’
Union
Long-term IDR: affirmed at ‘B’; Stable Outlook
Short-term IDR: affirmed at ‘B’
National Long-term rating: affirmed at ‘BBB+(nga)’
National Short-term rating: affirmed at ‘F2(nga)’
Viability Rating: unaffected at ‘b-‘
Support Rating: affirmed at ‘4’
Support Rating Floor: affirmed at ‘B’
Fidelity
Long-term IDR: affirmed at ‘B’; Stable Outlook
Short-term IDR: affirmed at ‘B’
National Long-term rating: affirmed at ‘BBB+(nga)’
National Short-term rating: affirmed at ‘F2(nga)’
Viability Rating: unaffected at ‘b-‘
Support Rating: affirmed at ‘4’
Support Rating Floor: affirmed at ‘B’
Senior unsecured notes: affirmed at ‘B’/’RR4’
FCMB
Long-term IDR: affirmed at ‘B’; Stable Outlook
Short-term IDR: affirmed at ‘B’
National Long-term rating: affirmed at ‘BBB+(nga)’
National Short-term rating: affirmed at ‘F2(nga)’
Viability Rating: unaffected at ‘b-‘
Support Rating: affirmed at ‘4’
Support Rating Floor: affirmed at ‘B’
SIBTC
National Long-term rating: unaffected at ‘AAA(nga)’
National Short-term rating: unaffected d at ‘F1+(nga)’
SIBTCH
National Long-term rating: unaffected at ‘AAA(nga)’
National Short-term rating: unaffected at ‘F1+(nga)’
