Rating Release

Agusto & Co. affirms the ‘Bbb+’ rating assigned to Union Bank of Nigeria Plc.’s ₦30 billion 10-year, 16.2% Fixed Rate, Direct, Unsecured and Subordinated Bond.

The rating expires on 30 June 2023.

Agusto & Co. hereby affirms the ‘Bbb+’ rating assigned to Union Bank of Nigeria Plc’s (“Union Bank” or “UBN” or “the Bank” or “the Issuer”) ₦30 billion 10-year 16.2% fixed rate unsecured subordinated bond (“the Issue” or “the Bond”) being series 3 of the ₦100 billion Debt Issuance Programme. The rating is a notch lower than the Issuer’s standalone ‘A-’ rating as the Issue is subordinated to other senior debt of the Bank and is adjudged to offer sufficient safety of timely payments of interest and principal. The rating assigned to Union Bank reflects adequate capitalisation, a good liquidity profile and a good refinancing capacity. Constraining the rating are low profitability, obligor concentration, harsh regulatory terrain and the prevailing macroeconomic headwinds.