Agusto & Co. affirms the ‘A+’ rating and stable outlook assigned to Access Bank Plc’s ₦30 billion 7-Year 15.5% Fixed Rate Subordinated Unsecured Notes Due 2026.
Agusto & Co. hereby affirms the ‘A+’ rating assigned to Access Bank Plc’s (‘Access Bank’, ‘the Issuer’ or ‘the Bank’) ₦30 billion 7-Year 15.5% Fixed Rate Subordinated Unsecured Notes (‘the Issue’ or ‘the Bond’). The rating is a notch lower than Access Bank’s standalone ‘Aa-’ rating issued by Agusto & Co. Limited. The Bond is subordinated to other senior debt of the Bank.
The rating assigned to the Issuer reflects its status as Nigeria’s largest bank (by total assets) and the experienced management team, who have successfully steered the Bank through various business cycles. The rating also considers Access Bank’s good refinancing capacity buoyed by a strong domestic franchise. However, offsetting the rating is lingering obligor concentration in the loan book and a higher impaired loan ratio. The harsh regulatory environment and economic adversities occasioned by the COVID-19 pandemic are also constraints to the Bank’s rating.
With the outbreak of the novel Coronavirus, we believe the banking industry will contend with various challenges. Nevertheless, we believe Access Bank’s strong domestic franchise should sustain its performance in the near-term. Based on this, a stable outlook is assigned to the rating of Access Bank Plc and the ₦30 billion 7-Year 15.5% Fixed Rate Subordinated Unsecured Notes.
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