FRI 12 NOV, 2021-theGBJournal- Fitch Ratings has assigned Fidelity Bank PLC’s USD 400 million senior unsecured notes maturing October 2026 a Long-Term Rating of ‘B-‘ and a Recovery Rating (RR) of ‘RR4’, reflecting average recovery prospects.
Fitch said the notes’ rating is aligned with Fidelity’s Long-Term Issuer Default Rating (IDR) of ‘B-‘, which captures Fitch’s view that the likelihood of default on these senior unsecured obligations reflects the likelihood of default of the bank.
‘’The notes constitute direct, general, unconditional, unsubordinated obligations of Fidelity and will at all times rank pari passu, without preference among themselves, with all other unsecured and unsubordinated obligations. The proceeds will be used for general corporate purposes, including support the bank’s trade finance business.’’
Áccording to Fitch, Fidelity’s IDRs are driven by its standalone creditworthiness, as expressed by its Viability Rating (VR) of ‘b-‘. The VR reflects the concentration of its activities in and sensitivity to Nigeria’s challenging operating environment and is constrained by a moderate franchise, high credit concentrations, an aggressive growth appetite and asset quality pressures. These constraints are balanced against reasonable profitability, capitalisation and liquidity.
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