Fitch Ratings, one of the big three credit rating agency in the world, has affirmed the national ratings – which measures creditworthiness – of eight Nigerian banks.
The banks are: First Bank of Nigeria (FBN), United Bank for Africa (UBA), Fidelity Bank (Fidelity), Diamond Bank (Diamond), First City Monument Bank (FCMB), Union Bank (Union) and Stanbic IBTC Bank (SIBTC), Bank of Industry (BOI) and the bank holding company Stanbic IBTC Holdings (SIBTCH).
Fitch added that the banks’ – apart from UBA, SIBTC and SIBTCH – national ratings are sensitive to a weakening ability of the Nigerian sovereign to provide support.
Fitch said “the rating actions follow Fitch’s downgrade of Nigeria’s long-Term Local Currency Issuer Default Rating (IDR) to ‘B+’ from ‘BB-‘, as a result of which it is now equalised with the Long-Term Foreign Currency IDR”.
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Fitch has recalibrated the national rating scale for Nigeria, following the sovereign criteria change and rating action.
NATIONAL RATINGS
“The national rating of UBA is based its standalone creditworthiness and is also underpinned by potential sovereign support,” Fitch said.
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“The national ratings of FBN, Fidelity, Diamond, FCMB and UBN are based on potential sovereign support given their systemic importance.”
The national ratings of SIBTC and SIBTCH are based on the probability of support from their parent, Standard Bank Group Limited (SBG; BBB-/Stable).
The national ratings of BOI are driven by potential sovereign support reflecting its 99.9% state ownership, its policy role and the bank’s strategic importance to Nigeria’s economic and industrial development.
THE FULL RATINGS:
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Bank of Industry Limited
Long-Term IDR: unaffected at ‘B+’;Outlook Stable
Short-Term IDR: unaffected at ‘B’
National Long-Term rating affirmed at ‘AA+(nga)’
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National Short-Term ratings affirmed at ‘F1+(nga)’
Support Rating: unaffected at ‘4’
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Support Rating Floor: unaffected at ‘B+’
First Bank of Nigeria Ltd
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Long-Term IDR: unaffected at ‘B’ ; Outlook Stable
Short-Term IDR: unaffected at ‘B’
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National Long-Term Rating: affirmed at ‘A+(nga)’
National Short-Term Rating: affirmed at ‘F1(nga)’
Viability Rating: unaffected at ‘b’
Support Rating: unaffected at ‘4’
Support Rating Floor: unaffected at ‘B’
FBN Finance Company BV’s subordinated notes: unaffected at ‘B-‘; Recovery Rating of ‘RR5’
United Bank for Africa Plc
Long-Term IDR: unaffected at ‘B’; Outlook Stable
Short-Term IDR: unaffected at ‘B’
National Long-Term Rating: affirmed at ‘A+(nga)’
National Short-Term Rating: affirmed at ‘F1(nga)’
Viability Rating: unaffected at ‘b’
Support Rating: unaffected at ‘4’
Support Rating Floor: unaffected at ‘B’
Diamond Bank Plc
Long-Term IDR: unaffected at ‘B’; Stable Outlook
Short-Term IDR: unaffected at ‘B’
National Long-Term Rating: affirmed at ‘BBB+(nga)’
National Short-Term Rating: affirmed at ‘F2(nga)’
Viability Rating: unaffected at ‘b-‘
Support Rating: unaffected at ‘4’
Support Rating Floor: unaffected at ‘B’
Senior unsecured notes: unaffected at ‘B’/’RR4’
Union Bank of Nigeria Plc
Long-Term IDR: unaffected at ‘B’; Stable Outlook
Short-Term IDR: unaffected at ‘B’
National Long-Term Rating: affirmed at ‘BBB+(nga)’
National Short-Term Rating: affirmed at ‘F2(nga)’
Viability Rating: unaffected at ‘b-‘
Support Rating: unaffected at ‘4’
Support Rating Floor: unaffected at ‘B’
Fidelity Bank Plc
Long-Term IDR: unaffected at ‘B’; Stable Outlook
Short-Term IDR: unaffected at ‘B’
National Long-Term Rating: affirmed at ‘BBB+(nga)’
National Short-Term Rating: affirmed at ‘F2(nga)’
Viability Rating: unaffected at ‘b-‘
Support Rating: unaffected at ‘4’
Support Rating Floor: unaffected at ‘B’
Senior unsecured notes: unaffected at ‘B’/’RR4’
First City Monument Bank Ltd
Long-Term IDR: unaffected at ‘B’; Stable Outlook
Short-Term IDR: unaffected at ‘B’
National Long-Term Rating: affirmed at ‘BBB+(nga)’
National Short-Term Rating: affirmed at ‘F2(nga)’
Viability Rating: unaffected at ‘b-‘
Support Rating: unaffected at ‘4’
Support Rating Floor: unaffected 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)’
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