Rating Release

Agusto & Co. downgrades the rating of FBNQuest Merchant Bank Limited to “A-”, with a stable outlook. 

The rating expires on 30 June 2025. 

Agusto & Co. hereby downgrades the rating assigned to FBNQuest Merchant Bank Limited (‘FBNQuest MB’ or ‘the Bank’) to “A-” given the uncertainty around the capital raising plan and the low profitability (albeit some improvement during the year under review). However, offsetting these negative factors is the Bank’s adequate capital, acceptable liquidity and good ability to refinance upheld by the affiliation with FBN Holdings Plc (“the Parent” or “the HoldCo.”), one of Nigeria’s largest financial service groups. A ‘3’ ESG score has also been attached to the rating, reflecting our view that environmental, social and governance issues have a material contribution to the Bank’s credit risk profile