Agusto & Co. affirms the “Aa-” rating and stable outlook assigned to Access Bank Plc
The rating expires on 30 June 2021.
The rating assigned to Access Bank Plc (‘Access Bank’ or ‘the Bank’) reflects its market position as the largest bank in Nigeria with total assets and contingents of ₦6.8 trillion ($18.6 billion @ ₦365/$) as at 31 December 2019, following a successful business combination with the erstwhile Diamond Bank Plc.
The rating recognises the Bank’s good refinancing capacity driven by a strong domestic franchise that endears investors to the Bank. Access Bank is led by an experienced and stable management team that drives its ambition to be the world’s most respected bank in Africa. Offsetting these positive rating factors are an impaired loan ratio that is above the regulatory guidance and lingering obligor concentration in the loan portfolio. In addition, the COVID-19 pandemic and tight regulatory environment are expected to adversely impact on the performance of Access Bank Plc and indeed the banking industry in the short term.
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