Rating Release

Agusto & Co. hereby maintains the ‘Bbb+’ rating assigned to Union Bank of Nigeria Plc’s Series 3 ₦30 billion 10-year 16.2% Fixed Rate Unsecured Subordinated Bond, with a stable outlook

The rating expires on 27 June 2024.

Agusto & Co. hereby affirms the ‘Bbb+’ rating assigned to 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”). The rating is a notch lower than the Issuer’s standalone ‘A-’ rating given its subordinated profile to other senior debt of the Bank. The rating assigned to Union Bank reflects its adequate capitalisation, good liquidity profile and refinancing capacity and improving profitability. However, the rating is constrained by the loan book concentration and volatile operating terrain. The potential impact of the integration of operations with Titan Trust Bank Limited (TTB) was also considered in the assigned rating.