Moody’s Investors Service (“Moody’s”) has completed a periodic review of the ratings of First Bank of Nigeria Limited and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody’s reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody’s practice has been to issue a press release following each periodic review to announce its completion.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement. For any credit ratings referenced in this publication, please see the rating tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and the rating history.
Key rating considerations are summarized below.
First Bank of Nigeria Limited’s (First Bank) B2 long-term local currency deposit rating is one notch above its b3 baseline credit assessment (BCA).
First Bank‘s BCA reflects its improving asset quality, satisfactory capital buffers and resilient profitability that is supported by its strong capacity to generate good levels of pre-provision income. The ratings also reflect the bank’s stable deposit-based funding profile, the high stock of liquidity assets and resilient foreign currency liquidity buffers. These strengths are moderated by Nigeria’s challenging operating environment that is worsened by depressed oil prices and ongoing coronavirus pandemic.
Our view of the creditworthiness of First Bank is based on FBN Holdings Plc’s (FBNH) public financial statements.
This document summarizes Moody’s view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period.
The principal methodology used for this review was the Banks Methodology published in November 2019. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.
This announcement applies only to EU rated and EU endorsed ratings. Non-EU rated and non-EU endorsed ratings may be referenced above to the extent necessary if they are part of the same analytical unit.
This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the rating tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and the rating history.
