Fitch rates Ecobank Transnational notes B

Fitch Ratings said it assigned an expected long-term rating of B with recovery rating of RR4 to Ecobank Transnational Inc.'s upcoming five-year senior unsecured notes issue of up to $500 million due in 2024.

The expect rating is in line with the company's long-term issuer default rating of B as the notes will constitute the holding company's direct, general, unconditional, unsubordinated and unsecured obligations and rank equally among themselves and all other senior obligations, Fitch explained.

The agency also said it assigned a recovery rating of RR4 to reflect average recovery prospects in a default scenario.

The rating was driven by the group's intrinsic creditworthiness as captured by the company's B viability rating, Fitch said.

The proceeds will be used to refinance the company's existing debt, the agency said.

The ratings are sensitive to material deterioration in the operating environment of Ecobank's largest market, Nigeria, which could lead to renewed asset quality deterioration and pressure on the group's capitalization, Fitch said.

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