Reviews & Outlooks | |
Reviews & Outlooks | |
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Wednesday, August 26, 2020 / 09:54 AM /
Coronation Merchant Bank / Header Image Credit: Coronation Merchant Bank
Nigeria's leading financial institution, Coronation
Merchant Bank emerged the first and only internationally rated merchant bank in
Nigeria as shown by the recently released Rating Report by Fitch, a global
rating agency.
Fitch assigned the Bank a Long Term Issuer Default
Rating (IDR) of 'B-' with a Negative Outlook, a Viability Rating (VR) of 'b-' and a Long-Term Rating of 'BBB(nga)'. The Bank's Long- and Short-Term IDRs are
driven by its standalone credit profile as determined by its VR.
Coronation Merchant Bank's VR reflects the challenging
and volatile operating environment in the country which was assigned a national
rating of 'B'/Negative by Fitch. The Bank's Long- and Short-Term Rating
reflects its creditworthiness relative to other issuers in Nigeria. The
Negative Outlook on the Bank's Long-Term IDR reflects the Agency's view on
prevailing operating conditions in the country.
According to the global rating agency, "management
quality is a relative strength with the senior team demonstrating a high degree
of credibility, experience and depth commensurate with the complexity of the
business". Coronation Merchant Bank boasts of good asset-quality, reporting
zero impaired loans (IFRS 9 Stage3)/gross ratio as at 30 June 2020, which has
also been the case since inception.
Commenting on the Report, Banjo Adegbohungbe, Managing
Director/CEO of Coronation Merchant Bank stated that, "The Bank's bold decision
to proceed with an internationally accepted rating despite the challenging and
uncertain operating environment is a testament to the Bank's
confidence, transparency and determination to continue to enhance its capacity
to add value to its clients and stakeholders. We consider this to be a historic
milestone on our journey to greatness".
Also commenting on the maiden international rating,
Chukwukadibia Okoye, the Chief Financial Officer of the Bank reiterated that "despite the volatility of our operating environment and additional headwinds
occasioned by the Covid-19 pandemic, the Bank will continue to improve on its
financial soundness and healthy balance sheet to deliver sustainable earnings
and profitability.
Related News
1.
Fitch Rates Coronation
Merchant Bank Limited at ''B-''; Outlook Negative
2.
Coronation Merchant Bank launches Mobile Banking App
3.
Agusto and Co. Affirms Coronation Merchant Bank's Rating
at Aplus with Stable Outlook
4.
Coronation Merchant Bank Organizes Forum to discuss the
Impact of COVID-19 and declining Oil Prices
5.
Coronation Merchant Bank Holds Virtual AGM, Appoints
Substantive MD
6.
IFC Partners with Coronation Merchant Bank to Boost Trade
Finance in Nigeria
7.
Coronation Merchant Bank Appointed Customs Revenue
Collecting Bank by the Nigeria Customs Service
8.
Coronation Merchant Bank Commercial Paper Issuance Series
V and VI Now Open
9.
Banjo Adegbohungbe Appointed Acting Managing Director,
Coronation Merchant Bank
10.
Banjo Adegbohungbe appointed Deputy Managing Director,
Coronation Merchant Bank
11.
Coronation Merchant Bank to Focus on Helping to Bridge
Nigeria's Infrastructure Gap - Abu Jimoh
12.
Coronation Merchant Bank Group records 46% growth in
Non-Interest Earnings for 2018 FY
13.
Coronation Merchant Bank Inaugurates Banking &
Finance Academy