The Fitch Ratings has revised the outlook on Coronation Merchant Bank’s long-term issuer default rating to ‘stable’ from negative and affirmed it at ‘B-.’
The bank’s Managing Director and Chief Executive Officer, Banjo Adegbohungbe, in a statement, said the rating agency also affirmed the bank’s viability rating at ‘B-’ and national long-term rating at ‘BBB (nga).’
According to Adegbohungbe, the revised outlook from Fitch attested to the efficacy of the bank’s business strategy that would continue to build the delivery of long-term value for clients.
“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,’’ Adegbohungbe stated.
Fitch noted that the bank had good asset-quality, reporting zero impaired loans and gross ratio as of the end of nine months, adding, “CMB’s lending has continued to grow rapidly (up 45 per cent year-on-year in nine months) 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. The bank’s business model and risk management has held firm during the past few difficult quarters and has prevented asset-quality deterioration or pressure on its funding and liquidity.”
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