Fitch rates Ecobank Nigeria B-

Fitch Ratings said it gave Ecobank Nigeria Ltd. a long-term issuer default rating of B- with a stable outlook and a viability rating of b-.

“ENG’s IDRs are driven by its stand-alone creditworthiness, as expressed by its viability rating (VR). The VR reflects the constraint of Nigeria’s challenging operating environment, the bank’s very high impaired loan ratio, weak profitability and modest core capital buffers. This is balanced by company profile strengths as well as a solid funding profile and good foreign-currency liquidity, which is enhanced by prudent liquidity management by the Ecobank group,” Fitch said in a press release.

The outlook reflects the view Ecobank has sufficient headroom at B- to absorb moderate shocks from sustained downside risks to the operating environment, the heightened level of risk in doing banking business in Nigeria and the ensuing risks to its financial performance (particularly asset quality) over the next 12-18 months, the agency said.

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