Reviews & Outlooks | |
Reviews & Outlooks | |
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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.
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