S&P downgrades several Nigeria banks

S&P said it took various rating actions on several Nigerian banks and one holding company.

The agency also downgraded Access Bank plc’s long-term counterparty credit rating to B from B+; Guaranty Trust Bank plc’s long-term counterparty credit rating to B from B+; Stanbic IBTC Bank plc’s long-term counterparty credit rating to B from B+; Zenith Bank plc’s long-term counterparty credit rating to B from B+; Ecobank Nigeria Ltd.’s long-term counterparty credit rating to B from B+; Fidelity Bank plc’s long-term counterparty credit rating to B- from B; and First City Monument Bank’s long-term counterparty credit rating to B- from B.

The outlooks on the banks are stable, except for the outlook on Ecobank, which has a negative outlook.

The B- long-term counterparty credit rating on Diamond Bank plc remains on CreditWatch with negative implications, where it was initially placed in June, the agency said.

These rating actions reflect a view that economic risk in the Nigerian banking system has increased due to the weak economic environment in Nigeria due to low oil prices, restrictive foreign-exchange regime and delayed fiscal stimulus, S&P said.

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