Fitch Ratings has revised the outlook on Coronation Merchant Bank’s Long-Term Issuer Default Rating (IDR) to Stable from Negative and affirmed the IDR at ‘B-’. The global rating agency has also affirmed the Bank’s Viability Rating (VR) at ‘b-’ and National Long-Term Rating at ‘BBB (nga)’.
According to Fitch Ratings, “Coronation Merchant Bank has good asset-quality, reporting zero impaired loans (IFRS 9 Stage3)/gross ratio at the end of nine months of 2020 which has also been the case since inception.
CMB’s lending has continued to grow rapidly (up 45 per cent year-on-year (yoy in 9M:20), in line with high demand for imports and the diversification of the bank’s funding profile. The bank has not afforded any debt relief to its clients and has not applied regulatory forbearance on its loan classifications.
The bank’s business model and risk management has held firm during the past few difficult quarters and has prevented asset-quality deterioration or pressure on its funding and liquidity. The bank’s Long and Short-term IDRs are driven by its standalone credit profile as determined by its VR, which reflects Nigeria’s (B/Stable) challenging and volatile operating environment.”
Commenting on the revised outlook, the Managing Director/CEO of Coronation Merchant Bank, Banjo Adegbohungbe, stated that earlier this year, the bank became the first Merchant Bank in Nigeria to be internationally rated.
“Our bold decision to proceed with an internationally accepted rating despite the challenging and uncertain operating environment was a reflection of our confidence in our franchise, our risk management culture and our commitment to delivering sustained value to our clients. The revised outlook from Fitch attests to the efficacy of our business strategy and we will continue to build on this to deliver long term value for our clients.”