Rating Release

Agusto & Co. downgrades the rating assigned to Union Bank of Nigeria Plc’s Series 3 ₦30 billion 10-year 16.2% fixed rate unsecured subordinated bond to “Bbb-” with a stable outlook. 

The rating expires on 27 June 2025 

Agusto & Co. hereby downgrades Union Bank of Nigeria Plc’s (“Union Bank” or “the Bank” or “the Issuer”) Series 3 ₦30 billion 10-year 16.2% fixed rate unsecured subordinated bond (“the Issue” or “the Bond”) to “Bbb-”. The rating is a notch lower than the Bank’s standalone rating of ‘’Bbb“ given its subordinated nature to other senior debt obligations of the Issuer. Subpar capitalisation levels, loan book concentration and the lingering concerns over weak corporate governance practices constrain the rating. However, the satisfactory liquidity profile, good refinancing capacity and improved profitability are rating positives.