Rating Release
Agusto & Co. affirms FSDH Merchant Bank Limited ratings at ‘A’ (long term national), ‘A1’ (short term national) and ‘B-‘ (foreign currency (FCY)), with a stable outlook
The rating expires on 30 June 2026.
Agusto & Co. affirms FSDH Merchant Bank Limited’s (‘FSDH MB’ or ‘the Bank’) ‘A’ (long term national), ‘A1’ (short term national) and ‘B-’ (foreign currency (FCY)) ratings on the back of a good liquidity profile, good profitability, membership of a diversified financial services group with good brand franchise and an experienced management team. However, the ratings are constrained by obligor and sectoral concentration, which increase the risk profile of the loan book. The concentrated deposit base was also considered in the assigned ratings. FSDH MB’s FCY rating is reflective of the risk rating of the Federal Republic of Nigeria, with a ‘B-’ sovereign rating assigned by Agusto & Co. Also supporting the FCY rating is the Bank’s improved ability to generate FCY liabilities as reflected in the 1.5 times increase in FCY deposit liabilities and the successful issuance of a $3.35 million medium-term subordinated private notes in the year under review. We have also affirmed the ‘2’ ESG score attached to the ratings, denoting that environmental, social and governance issues have minimal contributions to the Bank’s credit risk.
