Moody's Announces Completion of a Periodic Review of Ratings of Fidelity Bank Plc

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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