Rating Release

Agusto & Co. affirms the ‘A-’ rating assigned to Union Bank of Nigeria Plc. Series 2 7-year 15.75% senior unsecured bond.

The rating expires on 30 June 2023.

Agusto & Co. hereby affirms the ‘A-’ rating assigned to Union Bank of Nigeria Plc’s (“UBN”, “Union Bank”, “the Issuer” or “the Bank”) Series 2 7-year 15.75% senior unsecured bond (“the Issue” or “the Bond”). The rating mirrors the standalone “A-” credit rating assigned to UBN by Agusto & Co. Limited which reflects the Issuer’s good domestic franchise value, adequate capitalisation, good liquidity profile and experienced management team. We have also considered the potential impact of the planned integration of operations with Titan Trust Bank Limited in the assigned rating. Constraining the rating are subpar profitability, obligor concentration as well as the impact of the weak economy and unfavourable regulations.