Fitch revises Coronation Merchant Bank’s National Long-Term Rating to 'BBB+ (nga)

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 added that the bank’s weaknesses are balanced by “the Bank’s sound asset-quality record, adequate capitalization and performance, which constitute rating strengths”.

The agency further stated that Coronation Merchant Bank“has 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”.

Commenting on the upgraded rating, Banjo Adegbohungbe, Managing Director/CEO of Coronation Merchant Bank, stated that, “Receiving a rating upgrade during this challenging period demonstrates the strength of our business model, 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”.

Commenting on the rating, Chukwukadibia Okoye, the Chief Financial Officer of the Bank stated that “despite the volatility of our operating environment and several macroeconomic headwinds, the Bank has shown commendable resilience while maintaining a very healthy balance sheet.”