Fitch Upgrades First Bank of Nigeria's Subordinated Notes to 'CCC Plus'

Proshare

Thursday, April 26, 2018 /08:05 AM / Fitch Ratings 

Fitch Ratings has upgraded First Bank of Nigeria's (FBN) subordinated notes to 'CCC+'/'RR5' from 'CCC'/'RR5' and removed them from Rating Watch Positive (RWP). The notes were issued through FBN Finance Company BV, a special purpose vehicle, which was established to provide funding for the bank. FBN's other ratings are unaffected.
 

The upgrade follows the introduction of '+' and '-' modifiers to 'CCC' Long-Term Issuer Default Ratings (and long-term debt ratings), as per Fitch's Bank Rating Criteria published on 23 March 2018. Fitch placed the subordinated notes' 'CCC'/'RR5' rating on RWP following the publication of the Global Bank Rating Criteria Exposure Draft on 12 December 2017, which proposed the introduction of such modifiers.
 

Key Rating Drivers
FBN's subordinated notes are rated one notch below its 'b-' Viability Rating (VR). This reflects zero notches for non-performance risk relative to the VR and one notch for loss severity. The one notch for loss severity reflects Fitch's view of below-average recovery prospects, as defined by the notes' recovery rating of 'RR5'. 

Rating Sensitivities
As the notes are notched down from FBN's VR, their rating is primarily sensitive to a change in the VR. The notes' rating is also sensitive to a change in notching due to a revision in Fitch's assessment of the probability of the notes' non-performance risk relative to the risk captured in FBN's VR, or in its assessment of loss severity in case of non-performance.  

Proshare Nigeria Pvt. Ltd.

Related Links on FBNH

1.      FBNH Declares N40.01bn Profit in 2017 Audited Results; Proposes 25k Dividend,(SP:N13.40k)

2.     FBNHoldings Appoints Ariyibi to FBNQuest Capital, Borodo to FBNQuest Trustees Boards

3.     FBN Holdings Plc - Regaining its Mojo; Upgrade to Strong BUY

4.     Fitch Affirms FBN Holdings Plc and First Bank of Nigeria at ''B-''; Outlook Negative

5.     FIDELITYBK, FBNH Top Banking Stocks; Records over 300% Price Return in One Year

6.     UBN, DIAMONDBNK, FBNH Record Positive WTD GainDec 15, 2017

7.     Positive Sentiment Sustained on FirstBank as Share Price Hits N9.02k – Dec 08, 2017

8.     Again, FirstBank Share Price Moves Up by 6.12% Today; Hits N9.01k – Dec 07, 2017

9.     Analysts Confidence in FirstBank Share Price Justified; Records 153.43% YTD Appreciation – Dec 07, 2017

10.  FBN Holdings Plc Q3 2017 Conference Call and Earnings ... - Proshare Oct 27, 2017

11.   Analysing the H1 2017 Performance of FBNHoldings Plc - A Comprehensive Report Oct 20, 2017

12.  FBNHoldings Plc Q1’ 2017 Performance Assessment Report Updated Sep 25, 2017

13.  FBN Holdings Plc: What The Fundamentals Say - Proshare Aug 11, 2017

14.  Analysing the Performance of FBN Holdings Plc - A Comprehensive Report Aug 09, 2017

15.  FBN Holdings Plc: An Attractive Bait?

16.  FBN Holdings Plc: Searching Through the Lines

17.  FBNH Declares N45.84bn Profit in Q3''17 Results,(SP:N6.15k)

18.  Is FBNH a good buy?

19.  5 Things to Take Away from FBNH's Recent Results

20. FBNH Releases Q4'16 and Q1'17 Results; Declares N16.1 ... - Proshare Apr 27, 2017


Proshare Nigeria Pvt. Ltd.

Related NEWS

  1. Africa FICC - Middle Africa’s Total Banking Assets Declined Slightly by 1% YoY
  2. Africa FICC - Global and Regional Outlook
  3. Growth Prospect Improves But Uncertainties Remain
  4. One-day Quarterly Conference on ‘Nigeria’s Economic Outlook’, to hold on April 26, 2018
  5. Sovereign Ratings for Nigeria Affirmed by S and P
  6. Nigeria Ratings Affirmed At ''B and B''; Outlook Stable
  7. Seplat Petroleum Development Company Assigned ''B-'' Rating; Outlook Positive
  8. Growth Prospect with Rising Uncertainties
  9. Moody''s Downgrades Government of Kenya''s Issuer Rating to B2 and Assigns Stable Outlook
  10. Benefits of Long-Term Investment Strategy in the Equity Market
  11. Economic and Financial Markets Outlook 2018 – 2022 - Strong Growth Prospect with Downside Risks
  12. Fitch Affirms Sterling Bank Plc at ''B-''; Outlook Stable
  13. Fitch Affirms Stanbic IBTC Bank''s National Rating at ''AAA(nga)''
  14. Fitch Affirms Wema Bank at ''B-''; Outlook Stable
  15. Fitch Affirms Diamond Bank at ''B-''; Outlook Negative
  16. Fitch Affirms Fidelity Bank Plc at ''B-''; Outlook Stable
  17. Fitch Affirms Nigeria''s FCMB at ''B-''
READ MORE:
Related News
SCROLL TO TOP