Fitch Ratings has revised the National Long-Term Rating of Coronation Merchant Bank to ‘BBB+ (nga)’ from ‘BBB (nga)’. The global rating agency also affirmed the Bank’s Long-Term Issuer Default Rating (IDR) at ‘B-‘ with a Stable Outlook.
According to Fitch, the upgrade is a result of the Bank’s improved creditworthiness relative to that of other issuers in Nigeria.
The agency explained that its weaknesses are balanced by “sound asset-quality record, adequate capitalization and performance, which constitute rating strengths”.
Fitch said Coronation Merchant Bank recorded zero Stage 3 loans since converting to a merchant bank in 2015, despite the volatile market conditions that have characterized the local operating environment.
“The Bank’s ability to maintain quality assets reflects its prudent underwriting standards and risk controls. It reports no stage 2 loans nor loans benefitting from COVID-19 related debt relief measures”, the company added.
Banjo Adegbohungbe, Managing Director/CEO said receiving a rating upgrade during the current challenging period demonstrates the strength of CMB’s business model.
“It confirms the prudence of our risk management culture and the commitment of our staff to build a premier African institution. We remain focused on delivering sustainable value to our clients and stakeholders.”
Chukwukadibia Okoye, the Chief Financial Officer stated that “despite the volatility of our operating environment and several macro economic headwinds, the Bank has shown commendable resilience while maintaining a very healthy balance sheet”.
Fitch revises Coronation Merchant Bank’s national long-term rating to BBB+, affirms IDR B- rating