Moody’s Investors Services has assigned national scale ratings (NSRs) to Zenith Bank, Sterling Bank Plc and five other Nigerian banks.
This rating action, according to a statement from Moody’s, follows the publication of new national scale rating maps for Nigeria, Kenya and Morocco, which provide a measure of relative creditworthiness within a single country, and are derived from global scale ratings using country-specific maps.
Other banks which had national scale local currency deposit ratings assigned to them include Guaranty Trust Bank Plc (GTBank), Access Bank Plc, United Bank for Africa Plc (UBA), First Bank of Nigeria Ltd and the Bank of Industry (BoI).
The A1.ng rating is the second highest of three national scale ratings categories corresponding to the bank’s local currency deposit in global scale ratings, according to Moody’s.
“Sterling Bank’s national scale ratings capture the bank’s solid asset quality metrics (reported non-performing loans ratio of 2.8 per cent as at end-June 2016 versus 11.7 per cent for the banking system), provision coverage and solid deposit funding base.
“These strengths are balanced against low foreign currency liquidity buffers, which underpin the lower national scale foreign currency deposit rating compared with its local currency deposit national scale rating; vulnerabilities in asset quality, and relatively modest capital levels.