Agusto & Co. assigns an ‘A-’ rating to Fidelity Bank Plc’s ₦41.213 billion 10-year Subordinated Unsecured Fixed Rate Series 1 Bond Due 2031 with a stable outlook
The rating expires on 16 November 2021.
Agusto & Co. hereby assigns an ‘A-’ rating to Fidelity Bank Plc’s (‘Fidelity Bank’, ‘the Bank’ or ‘the Issuer’) ₦41.213 billion 10-year Subordinated Unsecured Fixed Rate Series 1 Bond (‘the Issue’ or ‘the Bond’) Due 2031. The Issue represents the first series of the ₦100 billion bond issuance programme registered in April 2020 with the Securities and Exchange Commission (SEC). The rating assigned to the Issue reflects Fidelity Bank’s position as a leading tier 2 bank in Nigeria. The rating also considers the Bank’s good liquidity profile, strong industry position, adequate capitalisation, satisfactory asset quality, good staff productivity and an experienced management team. However, constraining these positives are the obligor concentration in the loan portfolio and the Issuer’s high operating cost profile. We have also factored in adverse regulatory constraints and prevailing macroeconomic headwinds accentuated by the COVID-19 pandemic. The rating reflects the Issue’s subordinated status as it ranks pari passu with all other existing and future subordinated and unsecured obligations of the Issuer.