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Fitch Affirms Ratings on 10 Nigerian Banks

Fitch Ratings has affirmed the long-term Issuer Default Ratings (IDRs) of 10 Nigerian banks.

They are Zenith Bank Plc, FBN Holdings Plc and its subsidiary, First Bank of Nigeria Limited, the United Bank for Africa Plc, Guaranty Trust Bank Plc (GTBank) and Access Bank Plc.

Others are Diamond Bank Plc, Fidelity Bank Plc, Union Bank Plc and First City Monument Bank Limited (FCMB).

The rating agency explained in a report yesterday that the outlook for all the banks are stable.

“Fitch has also affirmed the National Ratings of Stanbic IBTC Bank Plc (SIBTC) and Stanbic IBTC Holdings Plc (SIBTCH). The ratings are all in the ‘B’ range, indicating highly speculative fundamental credit quality, and factor in Fitch’s expectation of increasingly challenging economic conditions and market volatility in Nigeria.

“The operating environment is affected by persistently low oil prices, continuing pressure on the domestic currency naira, likely further monetary policy and regulatory actions and increased political uncertainty. At the same time, the ratings are underpinned by continued strong underlying economic growth in Nigeria, particularly in non-oil sectors,” it added.

Fitch said it expects non-oil gross domestic product (GDP) growth of 5.5 per cent in 2015, compared to the 7.5 per cent attained in 2014. This would be driven by continued economic reforms and limited impact from public sector austerity.. Thisdaylive