July 9, 2020
by Moody’s Investors Service
Moody’s Investors Service (“Moody’s”) has completed a periodic review of the ratings of Guaranty Trust Bank Plc and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody’s reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody’s practice has been to issue a press release following each periodic review to announce its completion.
This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement.
Key rating considerations are summarized below.
Guaranty Trust Bank Plc’s (Guaranty Trust) B2 long-term local currency deposit rating is in line with the bank’s b2 baseline credit assessment (BCA).
Guaranty Trust’s b2 BCA reflects its strong capitalization and solid profitability which provide significant buffers to absorb expected asset quality deterioration. The ratings also reflect the bank’s good liquidity cushion and its deposit funded balance sheet. These strengths are balanced against Nigeria’s difficult operating environment that is exacerbated by depressed oil prices and the ongoing coronavirus pandemic.