Agusto & Co. upgrades Coronation Merchant Bank Limited’s ratings to the “Bbb+” (long term) and “A2” (short term), with a “stable” outlook.

Rating Release

Agusto & Co. upgrades Coronation Merchant Bank Limited’s ratings to the “Bbb+” (long term) and “A2” (short term), with a “stable” outlook.

The rating expires on 30 June 2026

Agusto & Co. upgrades Coronation Merchant Bank Limited’s (‘Coronation MB’ or ‘the Bank’) ratings to “Bbb+” (long term) and “A2” (short term), underpinned by improved profitability on the back of the change in funding strategy. The strong shareholders’ support, good liquidity position and adequate capitalisation are also considered positive rating factors. However, offsetting the ratings are the concentration in the loan book and the deposit base, high funding costs and persisting macroeconomic vagaries. A ‘3’ ESG score has also been attached to the rating, indicating material contribution of environmental, social and governance issues to the Bank’s credit risk profile.