Rating Release

Agusto & Co. downgrades the rating assigned to Union Bank of Nigeria Plc’s Series 2 15.75% 7-year senior unsecured bond to “Bbb” with a stable outlook. 

The rating expires on 30 June 2025 

Agusto & Co. hereby downgrades the rating assigned to Union Bank of Nigeria Plc’s (“UBN”, “Union Bank”, “the Issuer” or “the Bank”) Series 2 15.75% 7-year senior unsecured bond (“the Issue” or “the Bond”) to Bbb. This rating aligns with the Bank’s standalone credit rating of “Bbb”, reflecting weak capitalisation which we consider inadequate to absorb risks in the current challenging macroeconomic environment. The obligor concentration in the loan book as well as the prevailing macroeconomic headwinds also contributed to the downgrade. However, Union Bank benefits from a strong domestic franchise, a solid liquidity profile, and an experienced management team.