Agusto & Co. affirms FSDH Merchant Bank Limited’s national rating of ‘A‘ and assigns a ‘B-’ foreign currency rating, with a stable outlook
The rating expires on 30 June 2023.
Agusto & Co. affirms FSDH Merchant Bank Limited’s (‘FSDH’ or ‘the Bank) national rating of ‘A’ and assigns a ‘B-’ foreign currency rating. We have also assigned an ESG score of ‘2’ denoting that environmental, social and governance issues have minimal contributions to credit risk. The ratings assigned reflect the Bank’s adequate capitalisation, satisfactory liquidity profile and experienced management team. However, constraining these positives are the lingering obligor concentration in the loan book and the weak profitability due to the CBN’s cash reserve policy and the fragile macroeconomic environment. 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.