Moody’s upgrades FCMB Limited to B2

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Moody’s Investors Service (Moody’s) has completed a periodic review of the ratings of FCMB (First City Monument Bank) Limited and other ratings that are associated with the same analytical unit.

FCMB (First City Monument Bank) Limited’s (FCMB) B2 long-term deposit ratings incorporate a one-notch uplift of government support from the bank’s b3 baseline credit assessment (BCA).

FCMB’s b3 BCA reflects its high asset risks driven by its high single-name and sector concentrations, and its modest profitability compared with those of its top-tier domestic peers. These challenges are moderated by the bank’s stable retail deposit-based funding structure as well as good local currency liquidity buffers.

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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.