Wednesday, November 28, 2018 09:46 AM / Fitch Ratings
Fitch Ratings has assigned Nigeria-based Stanbic IBTC Bank PLC's (SIBTC) upcoming Series 1 naira-denominated up to NGN30 billion, five-year senior unsecured notes due 2023 an expected National Long- Term Rating of 'AAA(nga)(EXP)'.
The senior unsecured notes will be issued through SIBTC's updated NGN150 billion structured note programme. Fitch has also assigned expected National Long- and Short-Term programme ratings of 'AAA(nga)(EXP)' and 'F1+(nga)(EXP)' with respect to senior unsecured notes only.
Fitch will rate all other notes that can be issued under the programme, including structured and subordinated notes, on a case by case basis. There is no assurance that all notes issued under the programme will be rated or that all rated notes will be aligned with the programme rating.
The assignment of final ratings is contingent on the receipt of final transaction documents conforming to information already received.
Key Rating Drivers
The senior notes are rated at the same level as SIBTC's Long-Term National Rating of 'AAA(nga)', as the notes constitute the bank's direct, unconditional, unsubordinated and unsecured obligations and rank equally among themselves and with all of SIBTC's other senior obligations. In Fitch's view, the likelihood of default on the senior notes under the programme reflects the likelihood of default of the bank.
SIBTC's National Ratings are driven by potential support from its ultimate parent, South Africa's Standard Bank Group Limited (SBG; BB+/Stable) if required. Our view of institutional support considers the bank's strategic importance to SBG, high levels of integration with the group, as well as SBG's majority shareholding in SIBTC.
The expected ratings on the senior notes and programme are sensitive to any changes in SIBTC's National Long-and Short-Term Ratings.
SIBTC's other ratings are unaffected by this action, and are as follows:
Long-Term National Rating: 'AAA(nga)'
Short-Term National Rating: 'F1+(nga)'
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