Agusto & Co. affirms the “Aa-” rating assigned to United Bank for Africa Plc
The rating expires on 30 June 2021.
The rating assigned to United Bank for Africa Plc. (“UBA” or “the Bank”) reflects its market position as the fourth largest bank in Nigeria by asset size, upheld by a strong domestic and Pan-African franchise. The rating recognises the Bank’s low impaired loan ratio, acceptable capitalisation ratios and good liquidity profile in the year under review. However, the assigned rating is constrained by some degree of obligor concentration in the loan portfolio, low earnings vis-a-vis operating costs and weaknesses in the global macroeconomic environment caused by the novel COVID-19 pandemic.
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