Fitch Ratings has revised the outlook on Coronation Merchant Bank’s Long-Term Issuer Default Rating (IDR) to Stable, from Negative.
The rating agency also affirmed the bank’s IDR at ‘B-,’ its Viability Rating (VR) at ‘b-’ and National Long-Term Rating at ‘BBB (nga)’.
According to Fitch Ratings, “Coronation Merchant Bank has good asset-quality, reporting zero impaired loans (IFRS 9 Stage3)/gross ratio as at end 9M20, which has also been the case since inception. CMB’s lending has continued to grow rapidly (up 45% yoy in 9M20), in line with high demand for imports and the diversification of the bank’s funding profile.
“The bank has not afforded any debt relief to its clients and has not applied regulatory forbearance on its loan classifications.”
It noted further that the bank’s business model and risk management held firm during the past few difficult quarters and has prevented asset-quality deterioration or pressure on its funding and liquidity.
In addition, it stated that the bank’s Long and Short-term IDRs are driven by its standalone credit profile as determined by its VR, which reflects Nigeria’s (B/Stable) challenging and volatile operating environment.”
Commenting on the revised outlook, Managing Director/CEO of Coronation Merchant Bank, Banjo Adegbohungbe said: “Earlier this year, we became the first Merchant Bank in Nigeria to be internationally rated. Our bold decision to proceed with an internationally accepted rating despite the challenging and uncertain operating environment was a reflection of our confidence in our franchise, our risk management culture and our commitment to delivering sustained value to our clients.
“The revised outlook from Fitch attests to the efficacy of our business strategy, and we will continue to build on this to deliver long term value for our clients.”