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.