Rating Release

Agusto & Co. affirms FSDH Merchant Bank Limited’s ‘A’ national rating [A(NGA)] and assigns a ‘B-’ foreign currency rating [B-(FCY)], with a stable outlook.

 The rating expires on 30 June 2022.

Agusto & Co. affirms FSDH Merchant Bank Limited’s (‘FSDH’ or ‘the Bank) national rating of ‘A’ [A(NGA)] and assigns a ‘B-’ foreign currency rating [B-(FCY)]. The ratings assigned reflect the Bank’s good capitalisation, good liquidity profile and the conservative and experienced management team. However, constraining these positives is the lingering concentration (sectorial and obligor) in the loan book. The ratings are also constrained by FSDH’s comparably low profitability, the adverse implications of the regulatory environment and the fragile economic recovery on the Bank’s performance. FSDH’s assigned FCY rating is reflective of the risk rating of the Federal Republic of Nigeria with a sovereign rating of ‘B’ assigned by Agusto & Co.