Rating Release
Agusto & Co. affirms the ‘A’ national rating and ‘B-’ foreign currency (FCY) rating assigned to FSDH Merchant Bank Limited, with a stable outlook
The rating expires on 30 June 2025.
Agusto & Co. affirms FSDH Merchant Bank Limited’s (‘FSDH MB’ or ‘the Bank’) ‘A’ national rating and ‘B-’ foreign currency (FCY) rating on the back of a good liquidity profile, good capitalisation, and experienced management team. The rating is however constrained by the concentration in the loan book and the weak macroeconomic climate of Nigeria. FSDH MB’s FCY rating is reflective of the risk rating of the Federal Republic of Nigeria with a sovereign rating of ‘B-’ assigned by Agusto & Co. Also supporting the FCY rating is the Bank’s improved ability to generate FCY liabilities as reflected in the 2.4 times increase in FCY deposits liabilities in the year under review and the successful issuance of a $3.2 million subordinated debt note in April 2024. We have also affirmed the ‘2’ ESG score denoting that environmental, social and governance issues have minimal contributions to the Bank’s credit risk.