Agusto & Co. affirms the “Aa-” rating assigned to Rand Merchant Bank Nigeria Limited
The rating expires on 30 June 2021.
The rating assigned to Rand Merchant Bank Nigeria Limited (“RMBN” or “the Bank”) reflects its strong profitability during the review period, good asset quality and strong capitalisation levels that provide sufficient buffer against macroeconomic shocks. RMBN is a wholly owned subsidiary of FirstRand Limited with an asset base of $91.5 billion (South African Rand ZAR 1.7 trillion) as at 30 June 2019 and presence in over 25 countries. FirstRand Group supports the Bank’s governance framework, lending activities, liability generation and risk management functions. Offsetting these positive rating factors are lingering obligor concentration in the Bank’s loan portfolio and the novel COVID-19 pandemic, which has strained the performance of businesses to which RMBN lends.
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