Agusto & Co. affirms Coronation Merchant Bank’s ‘A+’ rating, assigns an ESG score of 2 and a stable outlook.
The rating expires on 30 June 2023.
Agusto & Co. has affirmed the ‘A+’ rating assigned to Coronation Merchant Bank Limited (‘Coronation MB’ or ‘the Bank’). We have also assigned an ESG score of ‘2’ denoting that environmental, social and governance issues have minimal contributions to credit risk. The rating reflects the Bank’s good asset quality, good liquidity profile, adequate capitalisation and experienced management team. Nonetheless, the rating is constrained by weak profitability largely due to the adverse effects of the cash reserve requirement policy. Concentration in the loan book in addition to Nigeria’s fragile macroeconomy and its attendant negative impact on the banking industry also constrains the rating.