Reviews & Outlooks | |
Reviews & Outlooks | |
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Friday, July 10,
2020 / 09:10 AM / by Moody's Investors Service / Header Image
Credit: The Guardian Nigeria
Moody's Investors Service ("Moody's") has
completed a periodic review of the ratings of FCMB (First City Monument Bank)
Limited and other ratings that are associated with the same analytical unit.
The review was conducted through a portfolio review in which Moody's reassessed
the appropriateness of the ratings in the context of the relevant principal
methodology(ies), recent developments, and a comparison of the financial and
operating profile to similarly rated peers. The review did not involve a rating
committee. Since 1 January 2019, Moody's practice has been to issue a press
release following each periodic review to announce its completion.
This publication does not announce a credit rating
action and is not an indication of whether or not a credit rating action is
likely in the near future. Credit ratings and outlook/review status cannot be
changed in a portfolio review and hence are not impacted by this announcement.
Key rating considerations are summarized
below.
FCMB (First City Monument Bank) Limited's (FCMB) B2
long-term local currency deposit rating incorporates a one-notch uplift of
government support from the bank's b3 baseline credit assessment (BCA).
FCMB's b3 BCA reflects the bank's robust
capitalization and stable deposit-based funding as well as good local currency
liquidity buffers. These strengths are balanced against FCMB's high asset risks
driven by its high single-name and sector concentrations amid Nigeria's
challenging operating environment and the bank's modest profitability.
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