Agusto & Co. affirms Unity Bank’s ‘Bb-’ rating, with a positive outlook and a “3” ESG Score

Rating Category: Banks

Agusto & Co. affirms Unity Bank’s ‘Bb-’ rating, with a positive outlook and a “3” ESG Score

Rating Release

Agusto & Co. affirms Unity Bank’s ‘Bb-’ rating, with a positive outlook and a “3” ESG Score.

The rating expires on 30 June 2023.

Agusto & Co. affirms the “Bb-” rating assigned to Unity Bank Plc (‘Unity Bank’ or ‘the Bank’), reflecting its satisfactory liquidity position, retail brand strength (particularly in the Northern region of Nigeria) and acceptable asset quality. We have also attached a ‘positive’ outlook to the rating of Unity Bank Plc based on our expectations that the Bank’s recapitalisation drive will be concluded in the near term. However, offsetting these factors are the Bank’s negative capital, sectoral concentration in the loan book, and prevailing macroeconomic and regulatory headwinds. We have also assigned an ESG score of “3” to Unity Bank as environmental, social and governance issues are adjudged to have a material contribution to the credit rating of the Bank.

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.

Finance & Leasing

COMPANY RATING EXPIRY OUTLOOK COUNTRY
Lukefield Finance Company Limited Bbb- Jun 30 , 2023 Stable Nigeria
Credit Direct Limited Bbb Jun 30 , 2023 Stable Nigeria

Corporates

COMPANY RATING EXPIRY OUTLOOK COUNTRY
North South Power Company Limited A- Jun 30 , 2023 Stable Nigeria
African Foundries Limited Bbb+ Jun 30 , 2023 Stable Nigeria

Corporate Bonds

COMPANY RATING EXPIRY OUTLOOK COUNTRY
Viathan Funding Plc.’s ₦10 billion 10-year Series 1 Senior Guaranteed Fixed Rate Bond Due 2027 Aaa Dec 31 , 2027 Stable Nigeria
NSP-SPV PowerCorp Plc’s ₦10 Billion 15-year Series 1 Aaa Dec 31 , 2033 Stable Nigeria