Moody's Announces Completion of a Periodic Review of Ratings of FCMB Limited

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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