Fitch upgrades Fidelity Bank’s issuer default rating from ‘B-’ to ‘B’

Fitch Ratings has upgraded Fidelity Bank Plc’s long-term issuer default rating (IDR) from ‘B-’ to ‘B’.

In a recent statement, Fitch also upgraded Fidelity’s national long-term rating to ‘A(nga)’ from ‘BBB+(nga)’.

According to the global rating agency, the upgrade is a result of the bank’s improving business profile and resilient financial metrics.

The agency added that the improved rating reflected the bank’s increased creditworthiness relative to other issuers in Nigeria, emphasising that, “Fidelity’s long and short-term IDRs are driven by its standalone creditworthiness, as expressed by its viability rating (VR) of ‘b’’’.

The agency further said that the VR reflects healthy asset quality, good business profile and reasonable capitalisation and liquidity.

“These are balanced against high sensitivity to Nigeria’s challenging operating environment as well as higher credit concentration as a percentage of equity and weaker profitability than larger domestic-rated peers,” Fitch said.

Commenting on the rating, Nneka Onyeali-Ikpe, managing director and chief executive officer (CEO), Fidelity Bank Plc, said, “Receiving this upgrade at a time when the global economy is faced with a myriad of challenges, speaks to the strength of our business model, the efficacy of our risk management culture and the commitment of our staff towards creating sustainable value for all stakeholders.

“As a bank, we will continue to execute our growth strategy in a prudent manner that allows us to take advantage of emerging opportunities in our various markets”.

Fidelity Bank is a full-fledged commercial bank operating in Nigeria with over 6.5 million customers serviced across its 250 business offices and digital banking channels. It was recently recognised as the Best SME Bank Nigeria 2022 by the Global Banking & Finance Awards.

The bank has also won awards for the “Fastest Growing Bank” and “MSME & Entrepreneurship Financing Bank of the Year” at the 2021 BusinessDay Banks and Other Financial Institutions (BAFI) awards.