Reviews & Outlooks | |
Reviews & Outlooks | |
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Friday, July 10,
2020 / 09:59 AM / by Moody's Investors Service / Header Image
Credit: Fidelity Bank/Ecographics
Moody's Investors Service ("Moody's") has
completed a periodic review of the ratings of Fidelity Bank plc 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
Fidelity Bank Plc's (Fidelity) B2 long-term local
currency deposit rating incorporates a one-notch uplift from its b3 baseline
credit assessment (BCA).
Fidelity's b3 BCA reflects the bank's vulnerability to
high asset risks due to its large proportion of foreign currency denominated
loans, a relatively tighter funding profile as reflected by its high
loans-to-deposit ratio, and moderate profitability, which is expected to be
pressured by Nigeria's challenging operating environment. These challenges are
balanced against the bank's satisfactory capitalization.
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