By Audrey Lotechukwu
MON, OCT 19 2020-theG&BJournal-Fitch Ratings has revised UBA Cameroon S.A’s (UBA CAM) Outlook to Stable from Negative while affirming the Long-Term Issuer Default Rating (IDR) at ‘B-‘. Fitch has also affirmed the bank’s Short-Term IDR at ‘B’ and Support Rating (SR) at ‘5’.
”UBA CAM’s Viability Rating (VR) of ‘b-‘ is unaffected by this rating action,” Fitch said.
Fitch said rating action follows the recent rating action taken on UBA CAM’s 100% parent Nigeria-based United Bank For Africa Plc (UBA; B/Stable) where its Long-Term IDR was removed from Rating Watch Negative (RWN) and assigned a Stable Outlook, hence indicating the parent’s improved ability to provide support in case of need (see “Fitch Affirms United Bank For Africa at ‘B’; off RWN; Outlook Stable” at www.fitchratings.com, published 5 October 2020).
”The removal of the RWN on UBA’s Long-Term IDRs reflects Fitch’s view of receding near-term risks to its credit fundamentals from the economic fallout in Nigeria arising from the oil price crash and coronavirus pandemic.”
The Rating Agency last week Friday also revised UBA Senegal’s (UBA SEN) Outlook to Stable from Negative while affirming the Long-Term Issuer Default Rating (IDR) at ‘B-‘. UBA SEN’s Viability rating (VR) of ‘b-‘ is unaffected by this rating action.
Fitch revision, ” follows the rating action taken on UBA SEN’s 86%-parent Nigeria-based United Bank for Africa Plc (UBA, B/Stable) where its Long-Term IDR was removed from Rating Watch Negative (RWN) and assigned a Stable Outlook, hence indicating an improved ability of the parent to provide support in case of need.”
”The removal of the RWN on UBA’s Long-Term IDR reflects Fitch’s view of receding near-term risks to the bank’s credit fundamentals from the economic fallout in Nigeria arising from the oil price crash and coronavirus pandemic. The Stable Outlook on UBA SEN’s LT IDR mirrors that on UBA.”
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