Reviews & Outlooks | |
Reviews & Outlooks | |
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Thursday, July 09,
2020 / 9:22 PM / by Moody's Investors Service/ Header Image
Credit: World Stage
Moody's Investors Service ("Moody's") has
completed a periodic review of the ratings of First Bank of Nigeria 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.
For any credit ratings referenced in this publication, please see the ratings
tab on the issuer/entity page on www.moodys.com
for the most updated credit rating action information and rating history.
Key rating considerations are summarized below.
First Bank of Nigeria Limited's (First Bank) B2
long-term local currency deposit rating is one notch above its b3 baseline
credit assessment (BCA).
First Bank's BCA reflects its improving asset quality,
satisfactory capital buffers and resilient profitability that is supported by
its strong capacity to generate good levels of pre-provision income. The
ratings also reflect the bank's stable deposit-based funding profile, high
stock of liquidity assets and resilient foreign currency liquidity buffers.
These strengths are moderated by Nigeria's challenging operating environment
that is worsened by depressed oil prices and ongoing coronavirus pandemic.
Our view of the creditworthiness of First Bank is
based on FBN Holdings Plc's (FBNH) public financial statements.
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