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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

Rating Release

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.

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.