Fitch rates First Bank of Nigeria notes B-

Fitch Ratings said it assigned First Bank of Nigeria Ltd.'s planned subordinated tier 2 notes a B-(EXP)expected rating.

FBN Finance Co. BV, as a special purpose vehicle, issued the subordinated notes. The structure of the notes is not yet finalized and the final rating is contingent upon the receipt of final documents conforming to information already received.

Fitch said the notes are subordinated but have no coupon flexibility, principle loss absorption of equity conversion features. They qualify as tier 2 regulatory capital under current Central Bank of Nigeria guidelines.

Fitch rated the notes one notch below First Bank of Nigeria's viability rating of b to reflect below average loss severity for subordinated relative to senior debt. No additional notches for non-performance risk have been applied, the agency said.

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