Agusto & Co. affirms the ‘A+’ rating assigned to Coronation Merchant Bank Limited.
The rating reflects the Bank’s good asset quality, good capitalization, satisfactory profitability and experienced management team.
Nonetheless, the rating is constrained by obligor concentration in the Bank’s loan book and a funding mix tilted largely to more expensive funding sources (typical of merchant banks in Nigeria).
The fragile macroeconomic climate and prevailing industry risk also negatively impact the Bank’s rating.
