Moody’s Completes Periodic Review of Ratings of First Bank of Nigeria

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Moody’s Investors Service (“Moody’s”) has completed a periodic review of the ratings of First Bank of Nigeria Limited and other ratings that are associated with the same analytical unit.

The review was conducted through a portfolio review in which Moody’s reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.

The review did not involve a rating committee. Since 1 January 2019, Moody’s practice has been to issue a press release following each periodic review to announce its completion.

This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.

Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement.

For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

Key rating considerations are summarized below.

First Bank of Nigeria Limited’s (First Bank) B2 long-term local currency deposit rating is one notch above its b3 baseline credit assessment (BCA).

First Bank’s BCA reflects its improving asset quality, satisfactory capital buffers and resilient profitability that is supported by its strong capacity to generate good levels of pre-provision income.

The ratings also reflect the bank’s stable deposit-based funding profile, high stock of liquidity assets and resilient foreign currency liquidity buffers.

These strengths are moderated by Nigeria’s challenging operating environment that is worsened by depressed oil prices and ongoing coronavirus pandemic.

Our view of the creditworthiness of First Bank is based on FBN Holdings Plc’s (FBNH) public financial statements.

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