The Fitch Ratings has revised the outlook on the Coronation Merchant Bank’s Long-Term Issuer Default Rating to “stable” from negative and affirmed it at “B-.”
Banjo Adegbohungbe, Managing Director and Chief Executive Officer of the bank, announced this in a statement on Sunday in Lagos.
Banjo Adegbohungbe, Managing Director and Chief Executive Officer of the bank, announced this in a statement on Sunday in Lagos.
Adegbohungbe said the global rating agency has also affirmed the bank’s Viability Rating (VR) at “B-“ and National Long-Term Rating at “BBB (nga)”.
The News Agency of Nigeria reports that the Fitch Ratings is a provider of credit ratings, commentary and research, as well as providing clarity and insight enabling its clients all over the world to make better decisions.
The CMB boss said the revised outlook from Fitch attested to the efficacy of Coronation Merchant Bank’s business strategy that would continue to build the delivery of long term value for clients.
Adegbohungbe said: “Earlier this year, we became the first Merchant Bank in Nigeria to be internationally rated.
“Our bold decision to proceed with an internationally accepted rating despite the challenging and uncertain operating environment was a reflection of our confidence in our franchise, our risk management culture and our commitment to delivering sustained value to our clients.
“The revised outlook from Fitch attests to the efficacy of our business strategy and we will continue to build on this to deliver long term value for our clients.”
According to Fitch Ratings, the bank has good asset-quality, reporting zero impaired loans (IFRS 9 Stage3) and gross ratio as at end of nine months, which has also been the case since inception.
Fitch said: “CMB’s lending has continued to grow rapidly (up 45 per cent year-on-year in nine months) in line with high demand for imports and the diversification of the bank’s funding profile.
“The bank has not afforded any debt relief to its clients and has not applied regulatory forbearance on its loan classifications.
“The bank’s business model and risk management has held firm during the past few difficult quarters and has prevented asset-quality deterioration or pressure on its funding and liquidity.
“The bank’s Long and Short-term IDRs are driven by its standalone credit profile as determined by its VR, which reflects Nigeria’s (B/Stable) challenging and volatile operating environment.”
The News Agency of Nigeria reports that CMB was established in 2015 to provide wholesale banking to a long-underserved market.
It offers corporate and investment banking, private banking/wealth management and global markets/treasury services.
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