Moodyâ€™s Investors Service has assigned a Counterparty Risk Assessment of B2 (CR) /Not Prime (CR) to Sterling Bank Plc for the month of June 2018.
The upgraded rating, according to a statement from the bank, also affirmed the bankâ€™s improved risk management process and IT infrastructure.
It was an uplift from the bank’s b3 baseline credit assessment (BCA) in May.
â€œEqually, it upholds Fitch Ratingsâ€™ February 2018, update on the lenderâ€™s standalone creditworthiness, coherent strategy, business transformation initiatives, and strong management team,â€ the statement added.
Moodyâ€™s based the credit rating on Sterling Bankâ€™s resilient deposit-based funding profile and fair local currency liquidity buffers, improvements to its IT infrastructure and risk management processes and a growing retail product suite as well as high probability of support in case of need.
Commenting on the updated rating, the Chief Executive Officer, Sterling Bank, Abubakar Suleiman said: â€œWe will continue to execute the plans to drive efficiency across the business under the three pillars of agility, digitisation and specialisation.
â€œThese pillars will propel us toward sustainable growth by enhancing our ability to innovate; solidify our retail funding base; strengthen our enterprise-wide risk management framework and drive excellent service delivery across all channels to enhance customer experience.â€
Analysts at Moodyâ€™s also assigned national scale rating on Sterling Bank, noting that the bankâ€™s national scale ratings of A2.ng/NG-1 for local currency deposits and A3.ng/NG-2 for foreign currency deposits are generated from the bank’s global scale ratings through maps specific to each country.
On the outlook for the bank, the report noted that, â€œAll the long-term ratings assigned to Sterling carry a stable outlook, reflecting our expectation that the bank’s pre-provision income will withstand credit costs and the bank’s credit fundamentals will remain in line with similarly rated banks.â€