Agusto & Co. affirms the “A-” rating of Union Bank of Nigeria Plc’s ₦13.5 billion Combined Series 1 (3 year) and Series 2 (7 year) Fixed Rate Senior Unsecured Issue
The rating expires on 30 June 2020.
The assigned rating reflects the standalone ‘A-‘ credit rating of the Issuer by Agusto & Co. Limited and the seniority status of the Issue over other unsecured obligations. UBN’s rating is underpinned by a good domestic franchise, strong shareholder support and a proven ability to refinance, evidenced in the over 100% subscription rate of its Series 1, 2 and 3 bond issuances under the ₦100 billion Debt Issuance Programme. The rating recognises a marked decline in non-performing loans (NPL) ratio to 8.1% in 2018 (FY2017: 20.8%) on account of write-offs and repayments.
Nonetheless, UBN’s profitability remains lower than its peers and the Bank’s market share across major financial indicators declined during the review period.
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