Global Credit Ratings (GCR) wey be rating agency, don upgrade FCMB Group Plc im national scale long-term issuer rating from BBB+(NG) to A-(NG). Dis upgrade show say di group capital position don stronger, earnings generation don better, and funding profile dey resilient.
GCR also affirm di group short-term issuer rating at A2(NG) and maintain Stable Outlook. Dem upgrade Series 2 N26 billion Additional Tier 1 subordinated bonds to BBB(NG) from BBB-(NG), with Stable Outlook for both instruments.
According to GCR, di upgrade reflect di improved financial strength of First City Monument Bank Limited, wey be di group core banking subsidiary, after dem do successful capital injection and sustain internal earnings generation. GCR state say: “Di ratings upgrade reflect di improvement for FCMB capital adequacy, supported by di additional capital injection and good internal earnings generation. Di rating also balance di strong competitive position, adequate funding and liquidity position against di bank evolving risk profile.”
However, GCR note say FCMB Group issuer rating remain one notch below dat of im banking subsidiary because of structural subordination wey dey associated with im non-operating holding company structure. Dem explain say di holding company depend on dividend flows and cash distributions from im subsidiaries, wey fit dey constrained during periods of regulatory intervention or financial stress.
