Rating Release

Agusto & Co. affirms Fidelity Bank’s ‘A’ rating, with a stable outlook.

The rating expires on 31 December 2022. 

Agusto & Co. hereby affirms the ‘A’ rating of Fidelity Bank Plc (‘Fidelity Bank’ or ‘the Bank’). The rating reflects the Bank’s improved profitability, strong ability to refinance, adequate capitalisation and satisfactory asset quality. We have also factored in Fidelity Bank’s experienced and stable management team. However, offsetting these positive rating factors are the obligor concentration in the loan book and a high number of obligors with speculative-grade ratings using the Bank’s internal scoring model. The rating is also constrained by the slowly recovering economy and the adverse effects of inflation on operating costs. In addition, regulatory changes in the banking industry restrain Fidelity Bank’s profitability metrics.