TUE 25 JAN, 2022-theGBJournal- Fitch Ratings has affirmed Ecobank Nigeria Limited’s (ENG) Long-Term Issuer Default Rating (IDR) at ‘B-‘ with a Stable Outlook, and simultaneously upgraded it’s National Short-Term Rating to ‘F2(nga)’ from ‘F3(nga)’.
Fitch said also that it has ‘’withdrawn ENG’s Support Rating as it is no longer relevant to the agency’s coverage following the publication of its updated Bank Rating Criteria on 12 November 2021.’’
‘’In line with the updated criteria, we have assigned a Shareholder Support Rating (SSR) of ‘ccc+’. Fitch has also withdrawn ENG’s Long-Term Local Currency IDR, which was published in error.’
Fitch said the IDRs of ENG are driven by its standalone creditworthiness, as expressed by its Viability Rating (VR) of ‘b-‘.
According to the rating agency, the Viability Rating of the bank reflects the concentration of its operations within Nigeria’s challenging operating environment, high credit concentrations, asset-quality weaknesses, modest profitability and weak capitalisation in the context of these risks. It also reflects a sizeable franchise and a healthy funding and liquidity profile.
ENG has moderate market shares of Nigeria’s banking-sector assets (4% at end-2020) but its franchise benefits from being a subsidiary of Ecobank Transnational Incorporated (ETI; B-/Stable); a large pan-African banking group with operations spanning 33 countries across sub-Saharan Africa (SSA)
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