Wednesday, December 07, 2016 9:40 AM /S & P Global Ratings
- We are suspending the ratings on Skye Bank due to a lack of sufficient, reliable, and timely information.
- The suspension is for up to 90 days, pending the receipt of further information.
Global Ratings today suspended its counterparty credit ratings on Skye Bank PLC.
At the time of the suspension, the global and local scale ratings on Skye Bank were 'CCC-/C' and 'ngCCC-/ngC' and these ratings were on CreditWatch negative.
The suspension is based on a lack of sufficient, timely, and reliable information to maintain our ratings on Skye Bank.
At mid-year 2016, the bank breached some regulatory ratios, including the minimum capital adequacy and liquidity ratios, which led the Central Bank of Nigeria to intervene, suspending the bank's board of directors and changing its top management on July 4, 2016.
Since then, the quality, quantity, and timeliness of information that we have received from the bank has fallen short of our requirements, resulting in our decision to suspend the ratings.
At the time of suspension, we understand from our interaction with the bank's management that Skye Bank has been making timely payments on funding facilities and deposits both in U.S. dollars and Nigerian naira.
We also understand that the bank has restructured some off-balance-sheet trade-related facilities under mutually agreed conditions with creditors.
We expect to be able to resolve the suspension within the next 90 days, subject to receiving the necessary information from the bank. If the information is not received within that timeframe, we will withdraw our ratings.
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