Ecobank Nigeria Limited’s (ENG) Long-Term Issuer Default Rating (IDR) has been confirmed by Fitch Ratings at ‘B-‘with a Stable Outlook. Fitch has also raised ENG’s National Short-Term Rating to ‘F2(nga)’ from ‘F3(nga).’
Following the publication of its updated Bank Rating Criteria on November 12, 2021, Fitch has withdrawn ENG’s Support Rating because it is no longer relevant to the agency’s coverage. We have assigned a Shareholder Support Rating (SSR) of ‘ccc+’ in accordance with the updated criteria. Fitch has also withdrawn ENG’s Long-Term Local Currency IDR, which was incorrectly published.
ENG’s IDRs are determined by its standalone creditworthiness, as expressed by its ‘b’ Viability Rating (VR).
In the context of these risks, the VR reflects the concentration of its operations within Nigeria’s challenging operating environment, high credit concentrations, asset-quality weaknesses, modest profitability, and weak capitalisation. It also reflects a sizable franchise as well as a strong funding and liquidity profile.
ENG has a small market share of Nigeria’s banking assets (4 percent at the end of 2020), but its franchise benefits from being a subsidiary of Ecobank Transnational Incorporated (ETI; B-/Stable), a large pan-African banking group with operations in 33 countries across Sub-Saharan Africa (SSA).
