First City Monument Bank Limited (FCMB) finds its Issuer Default Ratings (IDRs) under scrutiny, primarily influenced by its standalone credit strength, as represented by a Viability Rating (VR) of ‘b-‘.Thank you for reading this post, don't forget to subscribe!
The VR underscores the bank’s reliance on Nigeria’s demanding economic landscape, a moderate market presence, notable credit concentrations, challenges with non-performing loans, moderate profitability, marginal capital buffers above regulatory thresholds, and robust liquidity coverage.
Fitch Ratings has placed FCMB’s IDRs and VR on Rating Watch Negative (RWN), expressing concern about the potential risk of breaching minimum capital requirements should the Nigerian naira undergo further significant devaluation. FCMB’s National Ratings, on the other hand, provide an evaluation of the bank’s creditworthiness relative to other entities within Nigeria.
This move by Fitch reflects the evolving economic conditions and their potential impact on FCMB’s creditworthiness. The ratings agency will closely monitor the situation, emphasizing the importance of capital stability amid the challenging economic environment in Nigeria. Further assessments will be made to determine the implications on FCMB’s credit profile in the coming months.