Global Ratings Agency, Fitch during the week issued an update of the credit ratings for about 11 Nigerians banks. The ratings have attracted significant interest from investors considering the dire state of the Nigerian Financial Services Space. This is even made worse by the recent Management and Board Changes at Skye Bank following the CBN’s declaration that the bank had failed its prudential test.
Apart from investors, Commercial banks are also understandably closely watching their ratings as they scramble to shore up their capital adequacy ratios. An adverse credit rating could impact negatively on their ability to raise debt capital which is a critical requirements to participate in the interbank forex market.
We recommend you follow this link to understand what each credit ratings mean as banks are fond of characterizing ratings that remains stable or moved up a notch higher even if that movement still leaves them in a precarious situation.
The rating actions are as follows:
First Bank of Nigeria Ltd
Long-Term Foreign Currency IDR: downgraded to ‘B’ from ‘B+’; Outlook Stable
Short-Term Foreign currency IDR: affirmed at ‘B’
National Long-Term Rating: affirmed at ‘A+(nga)’
National Short-Term Rating: affirmed at ‘F1(nga)’
Viability Rating: affirmed at ‘b’
Support Rating: affirmed at ‘4’
Support Rating Floor: revised to ‘B’ from ‘B+’
FBN Finance Company BV’s subordinated notes: affirmed at ‘B-‘; Recovery Rating of ‘RR5’
FBN Holdings Plc
Long-Term Foreign Currency IDR: affirmed at ‘B’; Outlook Negative
Short-Term Foreign Currency IDR: affirmed at ‘B’
National Long-Term Rating: downgraded to ‘BBB+(nga)’ from ‘A(nga)’
National Short-Term Rating: downgraded to ‘F2(nga)’ from ‘F1(nga)’
Viability Rating: affirmed at ‘b’
Support Rating: affirmed at ‘5’
Support Rating Floor: affirmed at ‘No Floor’
Zenith Bank Plc
Long-Term Foreign Currency IDR: affirmed at ‘B+’; Stable Outlook
Short-Term Foreign Currency IDR: affirmed at ‘B’
National Long-Term Rating: affirmed at ‘AA-(nga)’
National Short-Term Rating: affirmed at ‘F1+(nga)’
Viability Rating: affirmed at ‘b+’
Support Rating: affirmed at ‘4’
Support Rating Floor: revised to ‘B’ from ‘B+’
Global medium-term note programme affirmed at ‘B+’ /’RR4’/’B’
Senior unsecured notes: affirmed at ‘B+’/’RR4’
United Bank for Africa
Long-Term Foreign Currency IDR: downgraded to ‘B’ from ‘B+’; Outlook Stable
Short-Term Foreign Currency IDR: affirmed at ‘B’
National Long-Term Rating: affirmed at ‘A+(nga)’
National Short-Term Rating: affirmed at ‘F1(nga)’
Viability Rating: affirmed at ‘b’
Support Rating: affirmed at ‘4’
Support Rating Floor: revised to ‘B’ from ‘B+’
Access Bank Plc
Long-Term Foreign Currency IDR: affirmed at ‘B’; Stable Outlook
Short-Term Foreign Currency IDR: affirmed at ‘B’
National Long-Term Rating: affirmed at ‘A(nga)’
National Short-Term Rating: affirmed at ‘F1(nga)’
Viability Rating: affirmed at ‘b’
Support Rating: affirmed at ‘4’
Support Rating Floor: affirmed at ‘B’
Access Finance BV’s senior notes, guaranteed by Access Bank: affirmed at ‘B’/’RR4’
Subordinated notes: affirmed at ‘B-‘; Recovery Rating affirmed at ‘RR5’
Guaranty Trust Bank PLC
Long-Term Foreign-Currency IDR: affirmed at ‘B+’; Outlook revised to Stable from Negative
Short-Term Foreign Currency IDR: affirmed at ‘B’
National Long-Term Rating: affirmed at ‘AA-(nga)’
National Short-Term Rating: affirmed at ‘F1+(nga)’
Viability Rating: affirmed at ‘b+’
Support Rating: affirmed at ‘4’
Support Rating Floor: revised to ‘B’ from ‘B+’
GTB Finance BV’s senior notes, guaranteed by Guaranty Trust Bank: affirmed at ‘B+’/’RR4’
GTB Finance BV’s global medium-term note programme, guaranteed by Guaranty Trust Bank: affirmed at ‘B+’/’RR4’/’B’
Diamond Bank Plc
Long-Term Foreign-Currency IDR: affirmed at ‘B’; Stable Outlook
Short-Term Foreign Currency IDR: affirmed at ‘B’
National Long-Term Rating: affirmed at ‘BBB+(nga)’
National Short-Term Rating: affirmed at ‘F2(nga)’
Viability Rating: affirmed at ‘b-‘
Support Rating: affirmed at ‘4’
Support Rating Floor: affirmed at ‘B’
Senior unsecured notes: affirmed at ‘B’/’RR4’
Union Bank
Long-Term Foreign-Currency IDR: affirmed at ‘B’; Stable Outlook
Short-Term Foreign Currency IDR: affirmed at ‘B’
National Long-Term Rating: affirmed at ‘BBB+(nga)’
National Short-Term Rating: affirmed at ‘F2(nga)’
Viability Rating: affirmed at ‘b-‘
Support Rating: affirmed at ‘4’
Support Rating Floor: affirmed at ‘B’
Fidelity Bank PLC
Long-Term Foreign-Currency IDR: affirmed at ‘B’; Stable Outlook
Short-Term Foreign Currency IDR: affirmed at ‘B’
National Long-Term Rating: affirmed at ‘BBB+(nga)’
National Short-Term Rating: affirmed at ‘F2(nga)’
Viability Rating: affirmed at ‘b-‘
Support Rating: affirmed at ‘4’
Support Rating Floor: affirmed at ‘B’
Senior unsecured notes: affirmed at ‘B’/’RR4’
First City Monument Bank Ltd.
Long-Term Foreign-Currency IDR: affirmed at ‘B’; Stable Outlook
Short-Term Foreign Currency IDR: affirmed at ‘B’
National Long-Term Rating: affirmed at ‘BBB+(nga)’
National Short-Term Rating: affirmed at ‘F2(nga)’
Viability Rating: affirmed at ‘b-‘
Support Rating: affirmed at ‘4’
Support Rating Floor: affirmed at ‘B’
Stanbic IBTC Bank PLC
National Long-Term Rating: affirmed at ‘AAA(nga)’
National Short-Term Rating: affirmed at ‘F1+(nga)’
Stanbic IBTC Holdings PLC
National Long-Term Rating: affirmed at ‘AAA(nga)’
National Short-Term Rating: affirmed at ‘F1+(nga)’
Wema Bank Plc
Long-Term Foreign-Currency IDR affirmed at ‘B-‘; Outlook Stable
Short-Term Foreign Currency IDR affirmed at ‘B’
Viability Rating affirmed at ‘b-‘
Support Rating affirmed at ‘5’
Support Rating Floor affirmed at ‘B-‘
National Long-term Rating affirmed at ‘BBB-(nga)’
National Short-term Rating affirmed at ‘F3(nga)’