Fitch revises outlooks for 11 Nigerian banks
By the AFREEQUE newsroom, based on MyJoyOnline
Fitch Ratings has revised the outlooks of nine Nigerian banks and two banking holding companies from stable to positive, while affirming their long-term issuer default ratings at ‘B’. The agency believes Nigeria’s economic environment could place less pressure on their creditworthiness; it also highlighted First HoldCo and First Bank of Nigeria’s return to compliance with capital requirements, according to Fitch.
Fitch Ratings has revised the outlooks of nine Nigerian banks and two banking holding companies from ‘stable’ to ‘positive’, while affirming their long-term issuer default ratings at ‘B’. The institutions concerned include Access Bank, Zenith Bank, First HoldCo, First Bank of Nigeria, United Bank for Africa, Guaranty Trust Holding Company, Fidelity Bank, FCMB, Wema Bank and Bank of Industry, according to the British ratings agency.
Fitch said the decision followed its revision, on 9 October, of the outlook on Nigeria’s ‘B’ sovereign rating. The agency believes reforms to the policy framework could continue without being interrupted by the upcoming elections and that Nigeria’s operating environment will place less pressure on the banks’ standalone creditworthiness.
The outlooks for First HoldCo and First Bank of Nigeria also benefit from their having returned to compliance with the total capital ratio. For Bank of Industry, a state-owned development finance bank, Fitch believes the government’s ability to provide support could improve.
