Agusto & Co. affirms the “A” rating and stable outlook assigned to FBNQuest Merchant Bank Limited.
The rating expires on 30 June 2021.
The rating assigned to FBNQuest Merchant Bank Limited (‘FBNQ MB’ or ‘the Bank’) reflects its membership of FBN Holdings Plc, one of Nigeria’s largest financial institutions with interests in commercial banking, pension custody, trusteeship, asset management and stockbroking. The rating is supported by a satisfactory asset quality, improving profitability and better capitalisation ratios. Offsetting these positive rating factors are persistent sector and obligor concentration risks in the loan book, a subpar funding and operating cost profile relative to its peers and the COVID-19 pandemic which has negative implications on the macro economy and business environment.
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