RATING RELEASE
Agusto & Co. affirms the ‘A-’ rating assigned to Union Bank of Nigeria Plc., with a stable outlook.
The rating expires on 30 June 2022.
Agusto & Co. affirms the “A-” rating assigned to Union Bank of Nigeria Plc (‘UBN’ or ‘Union Bank’ or ‘the Bank’). The rating assigned reflects adequate capitalisation levels, a good domestic brand franchise, a good liquidity profile and refinancing capacity. The rating is however constrained by the lower profitability metrics recorded compared to contemporaries and Nigeria’s slowly recovering economy that adversely impacts the Bank’s key obligors. The unpredictability of the regulatory environment also threatens the performance of UBN and Nigeria’s banking industry in the short term.
