Moody’s changes view on Nigerian banks

Moody's Investors Service said it affirmed the B2 long-term local currency deposit ratings of Nigerian banks, including Access Bank plc, Zenith Bank plc, First Bank of Nigeria Ltd., United Bank for Africa plc, Guaranty Trust Bank plc, Union Bank of Nigeria plc, Fidelity Bank plc, First City Monument Bank Ltd. and Sterling Bank plc.

The outlook on all the banks' long-term deposit ratings was changed to negative from stable.

The agency said the action follows Moody's decision to affirm Nigeria government's long-term issuer ratings of B2 and change its outlook to negative from stable.

“The change of outlook to negative from stable reflects the Nigerian banks' sizeable exposure to the sovereign debt securities and loans, averaging at 244% of the rated banks' capital bases as of June 2019, which links their credit profiles to that of the government,” the agency said in a news release.

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