Nigerian Banks’ Foreign Currency Liquidity Still Tight — Fitch Ratings

Nigerian Banks’ Foreign Currency Liquidity Still Tight — Fitch Ratings

LAGOS, Nigeria, Capital Markets in Africa — Cutting reserve requirements will not add liquidity to the Nigerian banking system because it releases no additional foreign currency (FC), says Fitch Ratings. Substantial government-related FC deposits are exempt from reserve requirements and have already been withdrawn from the system after the government ordered all public-sector deposits to be moved from commercial banks into the centralised Treasury Single Account (TSA) earlier this month. Nigeria’s Monetary Committee reduced mandatory…

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Nigerian Banks Resilient but Face Tough Outlook — Fitch Ratings

Nigerian Banks Resilient but Face Tough Outlook — Fitch Ratings

London (Capital Markets in Africa): Nigerian banks are operating in increasingly difficult conditions and this is likely to result in a sharp deterioration in profitability, asset quality, liquidity and capital ratios, says Fitch Ratings. We said the sector outlook was negative in December. GDP figures for 2Q15, released yesterday, show weaker year-on-year growth of 2.4%, down from 4% in the previous quarter, the slowest quarterly growth rate for over 10 years. The volatile operating environment…

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Moody’s changes Egypt’s banking system outlook to stable

Moody’s changes Egypt’s banking system outlook to stable

CAIRO, Egypt (Capital Markets in Africa) — Moody’s Investors Service has today changed the outlook for Egypt’s banking system to stable from negative, reflecting its expectation that banks’ funding and liquidity positions will remain strong amid improving operating conditions over the next 12-18 months. “We expect that Egypt’s banking system will benefit from improved operating conditions, resulting in rising consumer confidence and business investments, which in turn will support loan growth and asset quality”, says…

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Moody’s Assigns First-Time Ratings to Nigeria’s Sterling Bank

Moody’s Assigns First-Time Ratings to Nigeria’s Sterling Bank

LAGOS, Nigeria (Capital Markets in Africa) —- Moody’s Investors Service has today assigned first-time ratings to Sterling Bank plc (Sterling): B2/Not Prime Local and Foreign Currency issuer and deposit ratings, which are underpinned by a b3 Baseline Credit Assessment (BCA). The outlook on all ratings is stable. Moody’s also assigned a Counterparty Risk Assessment (CRA) of B1(cr)/Not Prime(cr). Sterling Bank’s b3 BCA reflects (1) solid asset quality metrics and provision coverage; (2) improvements to the…

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The Lafferty rating rates Nigerian banks ahead US, S/Africa, Europe, Australia, Canada in quality

The Lafferty rating rates Nigerian banks ahead US, S/Africa, Europe, Australia, Canada in quality

Lagos, Nigeria (Capital Markets in Africa) — In terms of their overall quality, Lafferty Bank Ratings reports that Nigerian banks rank well among banks across the world. A cross-border comparison shows that Nigeria ranks about 34.0, higher than South Africa which ranks 30.0, Canada 23.0, United States 20.0, Australia 22.0, and Europe 18.0. Nigerian banks’ financial ratios are particularly good and Michael Lafferty, chairman, Lafferty Group, reckons that the banks’ overall ratings will improve considerably…

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Moody’s affirms BMCE’s deposit ratings; changes the outlook to stable from negative

Moody’s affirms BMCE’s deposit ratings; changes the outlook to stable from negative

Casablanca, Morocco (Capital Markets in Africa)  — Moody’s Investors Service has today affirmed and changed the outlook to stable from negative on the Ba1 long-term local-currency deposit rating and senior unsecured debt rating of BMCE Bank. Concurrently, Moody’s affirmed BMCE’s ba3 baseline credit assessment (BCA), its Ba2 long-term foreign currency deposit rating, the short-term local and foreign-currency Not-prime ratings and its B1 foreign subordinate debt rating. In light of the revised bank rating methodology, published…

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Moody’s confirms African Bank’s Caa2 global scale deposit ratings; negative outlook

Moody’s confirms African Bank’s Caa2 global scale deposit ratings; negative outlook

Johannesburg, South Africa (capital Markets in Africa) — Moody’s Investors Service has today confirmed African Bank Limited’s Caa2 global scale long-term deposit and senior unsecured ratings, and the Caa2.za national scale issuer ratings. The global scale ratings continue to capture the implied losses of 10% that SARB’s restructuring plan will impose on both senior debt and wholesale deposits. Today’s rating action concludes the review for downgrade on African Bank’s ratings, initiated on 12 August 2014….

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