Global rating agency Fitch Ratings has affirmed that several Nigerian banks possess intrinsic strengths enabling them to maintain a stable business outlook despite prevailing macroeconomic challenges. In its latest ratings report, Fitch noted that Nigeria’s largest banks and others have substantial buffers that position them well in the face of broader economic difficulties.
Fitch affirmed the ratings of Long-Term Issuer Default Rating (IDR) at ‘B-‘ for the mentioned banks, along with National Long-Term Ratings carrying Stable Outlooks. The banks covered in the report include Access Bank Plc, Zenith Bank Plc, United Bank for Africa (UBA) Plc, Jaiz Bank Plc, Guaranty Trust Holding Company Plc (GTCO) and its flagship Guaranty Trust Bank Limited (GTB), FBN Holdings Plc and its flagship subsidiary, First Bank of Nigeria Ltd, Fidelity Bank Plc, and Wema Bank Plc.
Additionally, Fitch Ratings affirmed the National Long-Term Ratings of Stanbic IBTC Holdings Plc and its flagship subsidiary, Stanbic IBTC Bank Plc, at ‘AAA (nga)’ with a Stable Outlook.
The affirmation of these ratings reflects Fitch’s confidence that these banks are well-positioned to remain compliant with regulatory minimum capital adequacy ratio (CAR) requirements, even amid currency devaluation. The banks are believed to have sufficient buffers and pre-impairment operating profits to withstand potential moderate naira depreciation.
This positive outlook underscores the resilience and preparedness of Nigerian banks in navigating challenges and maintaining stability in the face of macroeconomic headwinds.
