Reviews & Outlooks | |
Reviews & Outlooks | |
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Friday,
February 9, 2018 /15:05 PM /Fitch Ratings
Fitch Ratings has affirmed the National Long and
Short-Term Ratings of Stanbic IBTC Holding Company Plc (SIBTCH) and its main
operating subsidiary, Stanbic IBTC Bank Plc (SIBTC), at 'AAA(nga)' and
'F1+(nga)' respectively.
Key Rating Drivers
National Ratings
SIBTCH's National Ratings are based on potential
support from its parent, South Africa's Standard Bank Group Limited (SBG/Group;
BB+/Stable) if required. Our view of institutional support considers SIBTCH's
strategic importance to SBG, high levels of integration between the parent and
the subsidiary, as well as SBG's majority shareholding in SIBTCH (53.07%
through Stanbic Africa Holdings Limited).
SIBTCH is the holding company for SBG's Nigerian
operations. Its main operating entity, SIBTC, is a mid-tier commercial bank,
which forms 95% of the holding company's assets. In our view, SBG's support
would extend to both SIBTC and SIBTCH. SIBTC is therefore rated the same as the
holding company.
Rating Sensitivities
National Ratings
Given Nigeria's Country Ceiling of 'B+', SIBTCH's
and SIBTC's National Ratings could withstand up to a two-notch downgrade of
SBG's Long-Term Foreign-Currency IDR of 'BB+' before they would be affected.
Downside risk to the ratings could also stem from a decline in SBG's
willingness or ability to provide support, or from a change in SBG's stake,
resulting in a loss of control.
A downgrade of Nigeria is unlikely to result in a
downgrade of SIBTCH/SIBTC's National Ratings.
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