Rating Release
Agusto & Co. hereby maintains the ‘A-’ rating assigned to United Capital Plc with a negative outlook.
The rating expires on 30 June 2025
Agusto & Co. hereby maintains the “A-” rating assigned to United Capital Plc (“United Capital”, “UCAP” or “the Group”) with a negative outlook. The rating reflects UCAP’s strong relationship with a large commercial banking group, broad range of products and services, diverse funding sources, good liquidity profile, significant market share and experienced management team. However, the rating is constrained by the substantial exposures to related and unrated entities and high impairment charges in the review year that restrained profits. In addition, the rating is negatively impacted by the further weakness in capitalisation with a capital adequacy ratio of 4.7% as at the 2023FYE, which is significantly lower than peers. We have also taken into cognisance, Nigeria’s high interest rate environment and inflationary pressures, which negatively impact investment banking groups and the capital markets.