Rating Release

Agusto & Co. hereby maintains the ‘A-’ rating assigned to Union Bank of Nigeria Plc’s Series 2 ₦6.3 billion 15.75% 7-year senior unsecured bond, with a stable outlook

 The rating expires on 30 June 2024.

 Agusto & Co. hereby affirms the ‘A-’ 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”). The rating mirrors the standalone “A-” credit rating assigned to UBN by Agusto & Co. Limited which reflects the Issuer’s good domestic franchise value, adequate capitalisation, good liquidity profile and experienced management team. The potential impact of the merger of Titan Trust Bank Limited’s operations with Union Bank was also considered in the assigned rating. Constraining the rating are the obligor concentration, the rising volume of stage 2 loans and the adverse impact of the ongoing macroeconomic reforms on businesses.