• About
  • Advertise
  • Privacy Policy
  • Contact
Thursday, July 17, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Fitch Revises Outlook of 5 Major Banks To Positive

May 17, 2024
Stephen M.Cby Stephen M.C
in Banking
0
Ghanaian Banks Show Resilience Amid Debt Restructuring Challenges- Fitch

Fitch Ratings

Fitch Ratings has updated its Outlook on the Long-Term Issuer Default Ratings (IDRs) of five prominent banks and one bank holding company from stable to positive.

The banks affected by this revision include Access Bank Plc, Zenith Bank Plc, United Bank for Africa Plc (UBA), Guaranty Trust Bank Limited (GTB), Guaranty Trust Holding Company Plc (GTCO), and Bank of Industry Limited (BOI). Despite this optimistic shift, their Long-Term IDRs remain affirmed at ‘B-‘.

The revision of the Outlooks on the Long-Term IDRs of Access Bank, Zenith Bank, UBA, GTB and GTCO mirrors the recent sovereign Outlook revision and reflects Fitch’s view that Nigeria’s Long-Term IDRs are likely to represent less of a constraint on the issuers’ standalone creditworthiness in the near term.

RelatedPosts

BoG Surrenders to CryptoCurrency Reality

Banking Sector Shakeup: Five Ghanaian Banks Under Intense BoG Scrutiny Over Capital Failures

BoG Stress Test Uncovers Banks’ Credit Vulnerability Amid Strong Liquidity Defences

The revision of the Outlook on BOI’s Long-Term IDR reflects our view that the government’s ability to provide support to the policy bank is likely to improve.

The revision of the banks which are mostly Nigerian Banks, partly reflected government reforms over the last year to support the restoration of macroeconomic stability and enhance policy coherence and credibility. Exchange rate and monetary policy frameworks have been adjusted, fuel subsidies reduced, coordination between the ministry of finance and the Central Bank of Nigeria (CBN) improved, central bank financing of the government scaled back and administrative efficiency measures are being taken to raise the currently low government revenue, as well as oil production.

The issuers’ National Ratings are unaffected by the event. As a policy bank, BOI’s Government Support Rating (GSR) has been affirmed at ‘b-‘. The GSRs of the other issuers are unaffected.

Viability Ratings and Standalone Creditworthiness

The Long-Term IDRs of Access Bank, Zenith Bank, UBA, GTB, and GTCO are underpinned by their standalone creditworthiness, as indicated by their Viability Ratings (VR) of ‘b-‘. These VRs are constrained by Nigeria’s sovereign Long-Term IDRs due to significant sovereign exposure, including fixed-income securities, cash reserves, and foreign exchange (FX) swaps with the Central Bank of Nigeria (CBN) relative to their capital.

Despite these constraints, the VRs also reflect the banks’ robust business profiles, characterized by substantial market shares and revenue diversification, strong profitability, and large capital and foreign-currency liquidity buffers. The positive outlook on the Long-Term IDRs mirrors the sovereign outlook, acknowledging the improvements and ongoing reforms in Nigeria’s economic landscape.

Even with the positive sovereign Outlook, operating conditions for Nigerian banks remain challenging. Recent reforms have introduced significant near-term credit and market risks to the banking sector. The Nigerian naira has devalued by over 65% against the US dollar since the end of May 2023, exerting pressure on banks’ capitalization and escalating credit concentration risks. The FX market remains volatile and has yet to stabilize.

Moreover, inflation has surged, reaching 33.2% in March, driven partly by exchange rate pass-through and rising food prices. Inflation is forecast to remain high in the near term, projected at 26.3% for 2024. These inflationary pressures compound the challenges faced by the banking sector, affecting profitability and operational stability.

Despite these headwinds, the VRs of the banks—particularly Zenith Bank, UBA, GTB, and GTCO—remain one notch below their implied VRs of ‘b’, reflecting the constraints of the operating environment and sovereign rating.

However, the banks maintain strong business profiles with significant market shares, diversified revenue streams, and robust capital and liquidity positions, which provide resilience against the challenging economic backdrop.

READ ALSO: Blinken Defends U.S Support For Israel

Tags: Access BankFitch ratingsFX marketGTBUBAZenith Bank
Please login to join discussion
Previous Post

Putin Claims Capturing Kharkiv Not Part Of Russia’s Current Plan

Next Post

Bank Of England Plans To Expand Leeds Operation

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.

Related Posts

Ghana's military discipline
General News

Ghana’s Defence Minister Warns Against Indiscipline In Military

July 17, 2025
Burna Boy’s Roots Span Nigeria Jamaica
Entertainment

Burna Boy’s Roots Span Nigeria Jamaica

July 17, 2025
Dr. Asiama Warns MPC: Don’t Let Ghana’s Hard-Won Gains Slip Away
Economy

Dr. Asiama Warns MPC: Don’t Let Ghana’s Hard-Won Gains Slip Away

July 17, 2025
AU Appoints Special Envoy To Spearhead Sahel Peace Efforts
Africa

AU Appoints Special Envoy To Spearhead Sahel Peace Efforts

July 17, 2025
Haruna Iddrisu, Ghana's Minister for Education
General News

Education Minister Yields to Consult More on Scholarship Bill

July 17, 2025
Dr. Tony Aidoo, Democracy, Violence
General News

Unworthy Democracy? Ablekuma North Chaos Fuels Questions

July 17, 2025
Ghana's military discipline
General News

Ghana’s Defence Minister Warns Against Indiscipline In Military

by Lilian AhedorJuly 17, 2025
Burna Boy’s Roots Span Nigeria Jamaica
Entertainment

Burna Boy’s Roots Span Nigeria Jamaica

by Esther Korantemaa OffeiJuly 17, 2025
Dr. Asiama Warns MPC: Don’t Let Ghana’s Hard-Won Gains Slip Away
Economy

Dr. Asiama Warns MPC: Don’t Let Ghana’s Hard-Won Gains Slip Away

by Stephen M.CJuly 17, 2025
AU Appoints Special Envoy To Spearhead Sahel Peace Efforts
Africa

AU Appoints Special Envoy To Spearhead Sahel Peace Efforts

by Lawrence AnkutseJuly 17, 2025
Haruna Iddrisu, Ghana's Minister for Education
General News

Education Minister Yields to Consult More on Scholarship Bill

by Evans Junior OwuJuly 17, 2025
Dr. Tony Aidoo, Democracy, Violence
General News

Unworthy Democracy? Ablekuma North Chaos Fuels Questions

by Silas Kafui AssemJuly 17, 2025
Ghana's military discipline
Burna Boy’s Roots Span Nigeria Jamaica
Dr. Asiama Warns MPC: Don’t Let Ghana’s Hard-Won Gains Slip Away
AU Appoints Special Envoy To Spearhead Sahel Peace Efforts
Haruna Iddrisu, Ghana's Minister for Education
Dr. Tony Aidoo, Democracy, Violence
[/vc_row_inner]

Recent News

  • Ghana’s Defence Minister Warns Against Indiscipline In Military
  • Burna Boy’s Roots Span Nigeria Jamaica
  • Dr. Asiama Warns MPC: Don’t Let Ghana’s Hard-Won Gains Slip Away
  • AU Appoints Special Envoy To Spearhead Sahel Peace Efforts
  • Education Minister Yields to Consult More on Scholarship Bill
The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.