Moody’s Investors Service has completed a periodic review of the ratings of Fidelity Bank plc and other ratings that are associated with the same analytical unit. The rating agency noted that Fidelity Bank Plc’s (Fidelity) B2 long-term deposit ratings incorporate a one-notch uplift from its b3 baseline credit assessment (BCA).
Fidelity’s b3 BCA reflects the bank’s vulnerability to high asset risks due to its large proportion of foreign currency-denominated loans, a relatively tighter funding profile as reflected by its high loans-to-deposit ratio, and moderate profitability compared to its domestic peers. These challenges are moderated by the bank’s satisfactory capitalization.
The review was conducted through a portfolio review discussion held on 14 June 2021 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.
