{"id":14322,"date":"2023-06-14T20:44:52","date_gmt":"2023-06-14T19:44:52","guid":{"rendered":"https:\/\/thedailyleaks.com\/?p=14322"},"modified":"2023-06-16T20:53:02","modified_gmt":"2023-06-16T19:53:02","slug":"fitch-affirms-fidelity-bank-ratings-with-stable-outlook","status":"publish","type":"post","link":"https:\/\/thedailyleaks.com\/fitch-affirms-fidelity-bank-ratings-with-stable-outlook\/","title":{"rendered":"Fitch affirms Fidelity Bank ratings with stable outlook"},"content":{"rendered":"
Fitch Ratings has affirmed Fidelity Bank Plc\u2019s credit rating at \u2018B-\u2018 with a stable outlook, according to its recent report.<\/p>\n
The global rating agency also upgraded the bank\u2019s National Short-Term Rating to \u2018F1+(nga)\u2019 from \u2018F1(nga)\u2019.<\/p>\n
It said the upgrade reflects the improvement in the bank\u2019s local-currency funding profile, as evidenced by the increase in the share of low-cost current and savings accounts in the bank\u2019s customer deposit base to 87.1% at the end of the first quarter (1Q2023) from 75% in 2021.<\/p>\n
According to Fitch, Fidelity Bank\u2019s rating affirmation is driven by its standalone creditworthiness, as expressed by its Viability Rating (VR) of \u2018b-\u2018, reflecting a growing franchise and a low share of impaired loans, as well as good capitalisation and funding.<\/p>\n
In Nigeria, banks continue to contend with US dollar shortages and the Central Bank of Nigeria\u2019s (CBN) highly burdensome cash reserve requirement. Fitch expects reform progress under the new administration, including the elimination of fuel subsidies and gradual liberalisation of the naira.<\/p>\n
ALSO READ:\u00a0Fidelity Bank announces 2nd Fidelity International Trade and Creative Connect<\/a><\/strong><\/p>\n However, Fitch said there is a risk of sharp naira depreciation due to the large disparity between the official and parallel exchange rates. The CBN has increased its policy rate by 700 basis points since April 2022 due to rising inflation.<\/p>\n Fidelity is Nigeria\u2019s sixth-largest bank, representing 5% of domestic banking system assets at end-2022. Strong balance sheet growth in recent years has increased market shares.\u00a0 \u201cWe expect these to increase further but remain below those of the five largest banking groups,” Fitch said.<\/p>\n","protected":false},"excerpt":{"rendered":" Fitch Ratings has affirmed Fidelity Bank Plc\u2019s credit rating at \u2018B-\u2018 with a stable outlook, according to its recent report. The global rating agency also upgraded the bank\u2019s National Short-Term Rating to \u2018F1+(nga)\u2019 from \u2018F1(nga)\u2019. […]<\/a><\/p>\n<\/div>","protected":false},"author":2,"featured_media":9405,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4,3,2],"tags":[736,2225],"coauthors":[25],"yoast_head":"\n