By Modupe Gbadeyanka
The Support Rating Floors (SRF) of 10 Nigerian banks has been reviewed down by Fitch Ratings to ‘no floor’.
Also, nine banks’ Support Ratings (SR) has been downgraded to ‘5’ following a reassessment of potential sovereign support for the banking sector.
As a consequence, the long-term issuer default ratings of First Bank of Nigeria Limited, FBN Holdings Plc, Diamond Bank Plc, Fidelity Bank Plc, First City Monument Bank Limited and Union Bank of Nigeria Plc are downgraded to ‘B-‘ from ‘B’, in line with their stand-alone creditworthiness as defined by their viability ratings, Channels TV reports.
Meanwhile, Fitch Ratings has affirmed the long-term IDRS of Zenith Bank Plc, Guaranty Trust Bank Plc, Access Bank Plc, United Bank for Africa (UBA) Plc, Wema Bank Plc and Bank of Industry (BOI).
The downgrade of the nine banks’ SRS and the revision of 10 banks’ SRFs to ‘no floor’ reflects Fitch’s view that senior creditors can no longer rely on receiving full and timely extraordinary support from the Nigerian sovereign if any of the banks become non-viable.
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