Moody’s Investors Service (Moody’s) has today upgraded First Bank of Nigeria Limited’s rating to B2 from B3 in its periodic review.
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 US-based rating agency stated that First Bank of Nigeria Limited’s (First Bank) B2 long-term deposit ratings incorporate a one-notch uplift of government support from its b3 baseline credit assessment (BCA).
First Bank’s BCA reflects its reducing but still-high asset risk and modest capital buffers compared to its peers as well as the bank’s stable deposit-based funding profile and a high stock of liquidity assets.
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.
Moody’s noted that its view of the creditworthiness of First Bank is based on FBN Holdings Plc’s (FBNH) public financial statements.
