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

Thursday, July 09, 2020 / 8:41 PM / by Moody's Investors Service/ Header Image Credit:  Bloomberg

Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Guaranty Trust 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. 

Guaranty Trust Bank Plc's (Guaranty Trust) B2 long-term local currency deposit rating is in line with the bank's b2 baseline credit assessment (BCA).

Guaranty Trust's b2 BCA reflects its strong capitalization and solid profitability which provide significant buffers to absorb expected asset quality deterioration. The ratings also reflect the bank's good liquidity cushion and its deposit funded balance sheet. These strengths are balanced against Nigeria's difficult operating environment that is exacerbated by depressed oil prices and the ongoing coronavirus pandemic.

Related News - Rating Agencies on Nigeria

1. Nigeria's Oil Output Cap to Weigh on Growth, External Finances
2. Moody's Affirms Nigeria's B2 Ratings, Maintains Negative Outlook
3. Fitch Downgrades Nigeria to 'B'; Outlook Negative
4. Nigeria Long-Term Rating Lowered To ''B-'' On Weakening External Position
5. Nigeria's Outlook Revised To Negative On Falling Foreign Exchange Reserves
6. Moody's Announces Completion of a Periodic Review of Ratings of Nigeria
7. Fitch Revises Outlook on Nigeria to Negative; Affirms at 'B plus'
8. Moody's Changes Nigeria's Sovereign Ratings Outlook to Negative From Stable; Affirms The B2 Ratings
9. Fitch Affirms Nigeria at 'B plus'; Outlook Stable

Related News - Rating Agencies on Banks

1. Moody's Announces Completion of a Periodic Review of Ratings of Bank of Industry
2. Coronavirus Shock Likely to Reduce Some Banks' Capital, Increase Credit Vulnerabilities
3. Fitch Maintains Access Bank's 'Aplus (nga)' National Long-Term Rating on RWN
4. Fitch Revises 2 Nigerian Banks' National Ratings
5. Banking System Outlook Update - Nigeria Outlook Changes to Negative Due to Oil Price Collapse
6. Various Rating Actions On Nigerian Banks By S and P Following Sovereign Downgrade; Outlooks Stable
7. Nigerian Banks at Severe Risk from Oil Price Slump, Coronavirus
8. Fitch Downgrades 3 Nigerian Banks to 'B', Places All 10 Banks on Negative Watch
9. Outlooks On Six Nigerian Banks Revised To Negative After Same Action On Sovereign
10. Fitch Revises Outlook on UBA Subsidiaries to Negative on Parent Action
11. Fitch Revises Outlook on 4 Nigerian Banks to Negative on Sovereign Action
12. Moody's Affirms Bank of Industry Ratings, Changes Outlook to Negative from Stable
13. Moody's Affirms Ratings of Nigerian Banks Following Action On The Nigerian Government
14. Fitch Affirms Union Bank of Nigeria Plc at 'B-'; Outlook Stable
15. Fitch Affirms Stanbic IBTC Bank at 'AAA(nga)'
16. Fitch Affirms Zenith Bank Plc at 'B' plus; Outlook Stable
17. Fitch Affirms Bank of Industry at 'B' plus; Outlook Stable
18. Fitch Affirms United Bank for Africa PLC at 'B' plus; Outlook Stable
19. Fitch Affirms Access Bank at 'B'; Stable Outlook
20. Fitch Affirms Guaranty Trust Bank at 'B' plus; Stable Outlook
21. Fitch Revises Outlook on FBNH to Stable; Affirms at 'B-'
22. S and P Global Ratings Affirmed ETI And Ecobank Nigeria Ltd Ratings; Outlook Stable
23. Fitch Rates Access Bank's Tier 2 Subordinated Debt Final 'A(nga)'
24. Fitch Affirms Ecobank Transnational Inc at 'B'; Outlook Stable
25. Access Bank 'B and B' Ratings Affirmed; Outlook Stable

Related News - Rating Agencies on Selected Companies and Notes

1. Moody's Announces Completion of a Periodic Review of Ratings of Interswitch Limited
2. Moody's Announces Completion of a Periodic Review of Ratings of SEPLAT
3. Moody's Assigns Ratings to Dangote Cement Plc's DMTN Program and Proposed Series 1 Notes
4. Rating Actions Taken On Several Corporate Issuers With Exposure To Nigeria
5. Fitch Affirms Bharti Airtel at ''BBB-''; Off Watch Negative; Outlook Stable
6. Fitch Revises IHS's Outlook to Negative; Affirms at 'B plus'
7. Moody's Affirms Interswitch's Ratings; Outlook Remains Stable
8. Moody Changes Ratings for IHS, Seplat and DANGCEM Following Negative Rating on Sovereign Outlook
9. Moody's Assigns B2 Corporate Family Rating To Interswitch Limited; Outlook Stable

Related News - Rating Agencies on Kaduna State

1. Fitch Revises Outlook on Kaduna State to Negative on Sovereign Rating Action; Affirms at 'B'
2. Fitch Affirms Nigeria's Kaduna State at ''B''; Outlook Stable - Oct 11, 2019
3. Fitch Affirms Nigeria's Kaduna State at 'B'; Outlook Stable - May 04, 2018

Related News - Rating Agencies on Lagos State

1. Fitch Downgrades Lagos State to 'B' on Sovereign Rating Action; Outlook Negative
2. Fitch Affirms Nigeria's Lagos State at 'B plus'; Outlook Stable
3. Global Credit Rating (GCR) Downgrades Lagos State's Environmental Municipality Note
4. Fitch Affirms Lagos State at 'B' Plus; Outlook Stable
5. Fitch Affirms Nigeria's Lagos State at ''B ''; Outlook Negative