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Thursday, July 09,
2020 / 8:24 PM / by Moody's Investors Service/ Header Image
Credit: United Bank for Africa
Moody's Investors Service ("Moody's") has
completed a periodic review of the ratings of United Bank for Africa 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.
United Bank for Africa Plc's (UBA) B2 long-term local
currency deposit rating is at the same level with the bank's b2 baseline credit
assessment (BCA).
UBA's BCA reflects its moderate asset risk because of
its more diversified loan book, and the bank's resilient profitability,
although expected to reduce. The ratings also reflect the bank's deposit-based
funding profile. These strengths are moderated by the bank's rising market
funding and its exposure to Nigeria, which is experiencing a challenging operating
environment, worsened by the depressed oil prices and ongoing coronavirus
pandemic.
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