Fitch Ratings has revised the outlook on Coronation Merchant Bank’s Long-Term Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDR at ‘B-’. The global rating agency has also affirmed the Bank’s Viability Rating (VR) at ‘b-’ and National Long-Term Rating at ‘BBB (nga)’.
According to Fitch Ratings, “Coronation Merchant Bank has good asset-quality, reporting zero impaired loans (IFRS 9 Stage3)/gross ratio as at end 9M20, which has also been the case since inception. CMB’s lending has continued to grow rapidly (up 45% yoy in 9M20), in line with high demand for imports and the diversification of the bank’s funding profile. The bank has not afforded any debt relief to its clients and has not applied regulatory forbearance on its loan classifications.
The Bank’s business model and risk management has held firm during the past few difficult quarters and has prevented asset-quality deterioration or pressure on its funding and liquidity. The Bank’s Long and Short-term IDRs are driven by its standalone credit profile as determined by its VR, which reflects Nigeria’s (B/Stable) challenging and volatile operating environment.”
Commenting on the revised outlook, Banjo Adegbohungbe, Managing Director/CEO of Coronation Merchant Bank, stated that, “Earlier this year, we became the first Merchant Bank in Nigeria to be internationally rated. Our bold decision to proceed with an internationally accepted rating despite the challenging and uncertain operating environment was a reflection of our confidence in our franchise, our risk management culture and our commitment to delivering sustained value to our clients. The revised outlook from Fitch attests to the efficacy of our business strategy, and we will continue to build on this to deliver long term value for our clients.”
About Coronation Merchant Bank
Coronation Merchant Bank was established in 2015 to provide wholesale banking to a long-underserved market. The Bank offers Corporate & Investment Banking, Private Banking/Wealth Management and, Global Markets/Treasury Services to its niche clientele. It presently has two branches located in Abuja and Port Harcourt with its Head Office in Lagos, Nigeria.
The Bank has been the recipient of numerous international and national awards for product innovation and sound corporate governance practices. Some of the international awards it received in 2020 and 2019 include Best Investment Bank in Nigeria by Global Finance, Best Investment Bank in Nigeria by World Finance, Best Investment Bank in Nigeria by Global Banking & Finance Review, Best Investment Bank by Global Business Outlook and Best Investment Bank in Nigeria by International Finance.