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Agusto & Co. assigns an ‘A’ rating to Fidelity Bank Plc, with a stable outlook

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…The rating expires on 31 December 2021.

Agusto & Co. hereby  assigns  an ‘A’ rating  to Fidelity Bank Plc (‘Fidelity Bank’ or ‘the Bank’). The rating assigned reflects Fidelity Bank’s strong industry position as evidenced by its leading position  in the  tier 2 banking  segment.

The rating  also considers  the  Bank’s good  liquidity position, strong ability to refinance, adequate capitalisation and satisfactory  asset quality. We have  also  factored  in Fidelity Bank’s good  staff productivity  and  experienced management team.

READ ALSO: Fidelity Bank restates commitment to youth development

However, constraining the  aforementioned positives  are the  obligor  concentration in the loan book and the Bank’s high operating cost profile. The assigned  rating also reflects the impact of the harsh regulatory  environment and prevailing macroeconomic headwinds accentuated by the COVID-19 pandemic.

We have attached a stable  outlook to the rating of Fidelity Bank Plc. Our outlook is based  on our expectation of controlled asset  quality  pressures and additional  capital  support  should the  proposed  medium-term bond  be successful.  The rating  and outlook  will be continually monitored  to ascertain  the impact of the adverse  economic climate.

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