Agusto & Co. affirms Rand Merchant Bank Nigeria Limited’s ‘Aa-’ rating, with a stable outlook.
The rating expires on 30 June 2022.
The rating assigned to Rand Merchant Bank Nigeria Limited (‘RMBN’ or ‘the Bank’) reflects the Bank’s stable and experienced management team, good liquidity profile, good capitalisation and good profitability. The rating also reflects RMBN’s membership of the FirstRand Group, a Pan-African integrated financial services provider with an asset base of ZAR1.9 billion (US$140 billion) as at 31 December 2020. The Bank benefits from demonstrated support from the FirstRand Group in the areas of governance, risk management and funding. The rating is however constrained by lingering obligor concentration in the loan book. We have also considerd the impact of the fragile economic recovery and adverse regulatory changes on the operating terrain.