Fitch Ratings has retained its National Long-Term Ratings of AAA (nga) and F1+(nga) assigned to Stanbic IBTC Holdings Plc and its banking subsidiary, Stanbic IBTC Bank. The report also showed that Stanbic IBTC Bank was excluded from Fitch’s Rating Watch Negative (RWN) list of Nigerian banks, even in the midst of the COVID-19 pandemic’s impact on businesses.
Fitch stated that its ‘AAA(nga)’ ratings signified the highest score in its National Rating scale for Nigeria and it is given to issuers with the lowest expectations of default risk, compared to other issuers.
“Furthermore, issuers or obligations that have the strongest capacity for timely payment of financial commitments relative to other issuers in the same country are rated F1+(nga). The Long and Short-term Issuer Default Ratings (IDRs) of Nigerian banks are driven by their stand-alone credit profiles as determined by their Viability Rating (VRs).
“According to the Fitch Ratings report, Nigeria’s Country Ceiling Rating of B+ will not affect both Stanbic IBTC Holdings PLC and Stanbic IBTC Bank PLC’s National Long Term Ratings. The National Ratings reflect the creditworthiness of the Nigerian banks relative to other issuers, and both Stanbic IBTC Holdings PLC and Stanbic IBTC Bank PLC are rated the highest in the country in this regard.
“The strong liquidity profile of Stanbic IBTC Holdings company and its banking subsidiary stems largely from their affiliation to, and ability to get, potential support from the parent company, Standard Bank Group,” a statement from the bank explained.