Business
Coronation Merchant Bank Savours Fitch Rating
By GWG Staff
Coronation Merchant Bank has expressed satisfaction after it became the first merchant bank in the country to be assessed by the international rating agency, Fitch, the global rating agency.
Fitch in its rating report released on Monday assigned Coronation Merchant Bank a Long Term Issuer Default Rating (IDR) of ‘B-’ with a Negative Outlook, a Viability Rating (VR) of ‘b-’ and a Long-Term Rating of ‘BBB(nga)’.
The Bank’s Long- and Short-Term IDRs are driven by its standalone credit profile as determined by its VR.
Welcoming the assessment, the bank’s managing director and chief executive, Banjo Adegbohungbe, said the decision to go for the rating would add value to the bank’s clients and stakeholders.
“The Bank’s bold decision to proceed with an internationally accepted rating despite the challenging and uncertain operating environment is a testament to the Bank’s confidence, transparency and determination to continue to enhance its capacity to add value to its clients and stakeholders. We consider this to be a historic milestone on our journey to greatness”.
The rating agency said that Coronation Merchant Bank’s VR reflects the challenging and volatile operating environment in the country which was assigned a national rating of ‘B’/Negative by Fitch.
The rating agency said that Coronation Merchant Bank’s VR reflects the challenging and volatile operating environment in the country which was assigned a national rating of ‘B’/Negative by Fitch.
The Bank’s Long- and Short-Term Rating reflects its creditworthiness relative to other issuers in Nigeria. The Negative Outlook on the Bank’s Long-Term IDR reflects the Agency’s view on prevailing operating conditions in the country.
Fitch added that “management quality is a relative strength with the senior team demonstrating a high degree of credibility, experience and depth commensurate with the complexity of the business”.
Coronation Merchant Bank boasts of good asset-quality, reporting a zero impaired loans (IFRS 9 Stage3)/gross ratio as at 30 June 2020, which has also been the case since inception.
The bank’s Chief Financial Officer, Chukwukadibia Okoye, speaking on the international rating said that “despite the volatility of our operating environment and additional headwinds occasioned by the Covid-19 pandemic, the Bank will continue to improve on its financial soundness and healthy balance sheet to deliver sustainable earnings and profitability.”
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