Moody’s eyes Nigerian banks for downgrade

Moody's Investors Service said it placed on review for downgrade the long-term deposit ratings, as well as long-term issuer and senior unsecured debt ratings, where applicable, of the following nine Nigerian banks: Access Bank plc, Zenith Bank plc, First Bank of Nigeria Ltd., United Bank for Africa plc, Guaranty Trust Bank Ltd., Union Bank of Nigeria plc, Fidelity Bank plc, First City Monument Bank Ltd. and Sterling Bank plc.

Moody's said its decision to place the long-term ratings on review for downgrade reflects the risk of increasing foreign currency rationing that could compromise the banks' operational ability to meet their foreign currency obligations, as well as the risk arising from a potential material depreciation in the country's foreign exchange rate to the banks' capitalization and asset quality.

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