Agusto & Co. affirms the ‘A-’ rating assigned to the ₦41.2 billion 10-year Series 1 Bond of Fidelity Bank plc with a stable outlook.

Agusto & Co. affirms the ‘A-’ rating assigned to the ₦41.2 billion 10-year Series 1 Bond of Fidelity Bank plc with a stable outlook.

Rating Release

Agusto & Co. affirms the ‘A-’ rating assigned to the 41.2 billion 10-year Subordinated Unsecured Fixed Rate Series 1 Bond (‘the issue’ or ‘the Bond’) of Fidelity Bank plc with a stable outlook.

 The rating expires on 7 January 2023.

Agusto & Co. affirms the ‘A rating assigned to Fidelity Bank Plc’s (‘Fidelity Bank’, ‘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 Issue represents the first series of the ₦100 billion bond issuance programme registered in April 2020 with the Securities and Exchange Commission (SEC). The rating assigned to the Bond reflects the Issue’s subordinated status as it ranks pari passu with all other existing and future subordinated and unsecured obligations of the Issuer.

The rating also reflects Fidelity Bank’s improved profitability, strong ability to refinance, adequate capitalisation and satisfactory asset quality. However, constraining the rating is the obligor concentration in the loan portfolio, a significant deterioration in the quality of obligors according to the Bank’s internal rating model, the slowly recovering economy and the adverse effects of inflation on operating costs. In addition, the adverse impact of regulatory costs on the profitability of the banking industry is also a constrain.

This Rating Release is transmitted to you for the sole purpose of dissemination through your newspaper / magazine / agency. The rating release may be used by you in full or in part without changing the meaning or context thereof but with due credit to Agusto & Co.

Finance & Leasing

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Credit Direct Limited Bbb Jun 30 , 2022 Stable Nigeria
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Axxela Limited A- Jun 30 , 2022 Stable Nigeria
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Corporate Bonds

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Axxela Funding 1 Plc’s Series 1 Bond A- May 31 , 2022 Stable Nigeria
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NSP-SPV PowerCorp Plc’s ₦10 Billion 15-year Series 1 Aaa Dec 31 , 2033 Stable Nigeria