Fitch upgrades FirstBank’s ratings to ‘B’ on improved asset quality
Fitch Ratings has raised the long-term issuer default ratings (IDRs) for FBN Holdings Plc (FBNH) and First Bank of Nigeria Limited (FBN) from “B-” to “B,” with stable outlooks.infomation guide nigeria
The global rating agency also raised the lender‘s viability ratings (VR) from the previous rating of “b-” to “b” in a report published on Friday.
Following an improvement in corporate governance, the long-term IDRs are upgraded, demonstrating that the two long-standing related-party exposures have been addressed.jamb result
It also suggests that capitalization risks have decreased, boosted by robust internal capital production since the Central Bank of Nigeria expressed concerns about the anomalies, the agency added.
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“Fitch has withdrawn FBNH’s and FBN’s Support Ratings and Support Rating Floors, as they are no longer relevant to the agency’s coverage following the publication of its updated Bank Rating Criteria on November 12, 2021. In line with the updated criteria, we have assigned Government Support Ratings (GSR) of ‘no support’ (ns) to both issuers,” Fitch said.
“Fitch understands from management that FBNH and FBN have not been subject to penalties in relation to irregularities raised by the CBN in April 2021 and no further irregularities have been raised,” the report said.
FirstBank is the third-largest bank in Nigeria, retaining 11 per cent of the total assets of Nigeria’s banks as per 2021 financials.
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