Rating Release

Agusto & Co. affirms the ‘A-’ rating assigned to Fidelity Bank Plc’s ₦41.2 billion 10-year Subordinated Unsecured Fixed Rate Series 1 Bond with a stable outlook.

 The rating expires on 7 January 2024.

Agusto & Co. hereby affirms the ‘A-’ rating assigned to Fidelity Bank Plc’s (‘Fidelity Bank’ or ‘the Bank’ or ‘the Issuer’) ₦41.2 billion 10-year Subordinated Unsecured Fixed Rate Series 1 Bond (‘the Issue’ or ‘the Bond’) due in 2031. The rating of the Bond is a notch lower than Fidelity Bank’s standalone rating of “A” issued by Agusto & Co., given its subordinated profile to other senior debt of the Bank. The rating assigned to the Issuer reflects its growing domestic brand franchise, improved profitability, good liquidity ratio, adequate capitalisation and low level of impaired loans. However, constraining the rating is the concentration in the loan portfolio, the elevated operating cost profile relative to the Industry and the prevailing regulatory and macroeconomic headwinds.