July 9, 2020
By Moody’s Investors Service
Moody’s Investors Service (“Moody’s”) has completed a periodic review of the ratings of United Bank for Africa 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.
United Bank for Africa Plc’s (UBA) B2 long-term local currency deposit rating is at the same level with the bank’s b2 baseline credit assessment (BCA).
UBA’s BCA reflects its moderate asset risk because of its more diversified loan book, and the bank’s resilient profitability, although expected to reduce. The ratings also reflect the bank’s deposit-based funding profile. These strengths are moderated by the bank’s rising market funding and its exposure to Nigeria, which is experiencing a challenging operating environment, worsened by the depressed oil prices and ongoing coronavirus pandemic.