FCMB Limited Faces Ratings Watch Amid Economic Challenges

Date:

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.

Gbenga Samson
Gbenga Samsonhttp://ThisDayLive.com
Samson Gbenga Salau [Editorial Board Adviser] Gbenga Samuel Salau is a professional journalist with over 17 years experience in journalism, he is a graduate of Communication and Language Arts, University of Ibadan. On completion of his youth service, he joined The Guardian as a freelance journalist and was later absorbed as a staff. While in the University, he was a campus journalist reporting for the Independence Hall and Faculty of Arts Press Clubs. As a campus journalist, he won the following awards; Independence Hall Press Best News writer; University of Ibadan Union of Campus Journalists’ Best News Reporter/Writer; First Runner-up, Reuben Abati Award for Investigative Journalism; Association of Faculty of Arts Students’ Press Best Reporter; University of Ibadan Union of Campus Journalists’ Best Political Writer; Winner, Reuben Abati Award for Investigative Journalism, and University of Ibadan Union of Campus Journalists’ Best Interviewer. He served the Association of Communication and Language Arts Students, as the Public Relation Officer, the same year he was appointed the News Editor of the Association of Faculty of Arts Students Press. The following session, he was made the General Editor, and a member of the 13-man University of Ibadan Students’ Union Transition Committee. As a reporter in The Guardian, in 2014, he won the Promasidor Quill Award Best Report on Nutrition and DAME Business Reporting category. In the 2015 edition of the Promasidor Quill Award, he won the best Report on Nutrition and Brand Advocate Categories, while in 2016, he won the NMMA Print Journalist of the Year, first runner-up Golden Pen Reporter of the Year and SERAs CSR Awards. Gbenga Salau loves traveling, reading, and listening to songs with good lyrics no matter the genre.

Share post:

Subscribe

Popular

More like this
Related

Shettima unveils President Tinubu’s vision for Southeast industrial growth.

On Monday, February 26, Vice President Kashim Shettima launched...

President Tinubu Approves Implementation of Orosanye Report for Government Restructuring

In a groundbreaking move, the Federal Executive Council (FEC)...
WP to LinkedIn Auto Publish Powered By : XYZScripts.com