Rating Release
Agusto & Co. affirms the “Bb-” rating assigned to Parallex Bank Limited, with a stable outlook
The rating expires on 30 June 2023.
Agusto & Co. hereby assigns a “Bb-” rating to Parallex Bank Limited (‘Parallex Bank’ or ‘the Bank’) reflecting its good liquidity profile, strong shareholder support and experienced management team. Offsetting the assigned rating are the Bank’s limited operating history as a commercial bank, asset quality that requires improvement, weak profitability, adverse regulations that continue to moderate the performance of Nigerian banks and the prevailing macroeconomic downturn.
We have also assigned a “3” ESG score as we believe social and governance issues, and to a lesser extent environmental issues, have a material contribution to Parallex Bank’s credit rating.