• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Banking & Finance

Fitch Ratings affirms UBA at ‘B-‘ with stable outlook

2 years ago
in Banking & Finance, Economy, Features, highlights, Home, home-news, latest News
2 min read
0 0
0
75
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Fitch Ratings affirms UBA at ‘B-‘ with stable outlook

Fitch Ratings has affirmed United Bank for Africa (UBA) Plc’s Long-Term Issuer Default Rating (IDR) at ‘B-‘ with a Stable Outlook. Additionally, Fitch has upheld the bank’s National Long-Term Rating at ‘A+’ and assigned a Stable Outlook, underscoring UBA’s stability amidst a challenging operating environment. The agency attributes UBA’s IDR to its standalone creditworthiness, as reflected by its ‘b-‘ Viability Rating (VR). However, Fitch also acknowledges constraints imposed by Nigeria’s Long-Term IDRs, primarily due to the bank’s high sovereign exposure relative to capital and its concentrated operations within Nigeria.

UBA’s National Long-Term Rating strikes a balance between its robust franchise and higher leverage compared to its higher-rated peers. Fitch acknowledges UBA’s position as a strong player in the Nigerian banking sector, with a pan-African franchise encompassing subsidiaries in 20 countries outside of Nigeria. These subsidiaries accounted for a significant 46% of UBA’s net income and 39% of its assets as of the close of 2022. The agency commends UBA’s ability to capitalize on business and trade flows, as well as its prowess in attracting deposits across the continent, highlighting it as a competitive advantage over its peers.

However, Fitch also raises concerns over UBA’s high sovereign exposure, which, while moderate in terms of single-obligor credit concentration, poses potential risks. The 20 largest loans represent 113% of UBA’s Fitch Core Capital (FCC) as of the end of 2022. Notably, UBA’s exposure to the oil and gas sector stands lower than that of its peers, mitigating some risks. Nevertheless, UBA’s exposure to the Nigerian sovereign through securities and Central Bank of Nigeria (CBN) cash reserves remains considerably high relative to its FCC, surpassing 350% as of the end of 2022.

Operating in Nigeria’s dynamic business landscape, UBA, like its peers, faces ongoing challenges such as US dollar shortages and the Central Bank of Nigeria’s (CBN) burdensome cash reserve requirement. Fitch anticipates progress in reform initiatives under the new administration, including the phased elimination of fuel subsidies and a gradual liberalization of the naira. However, the agency highlights a potential risk of sharp naira depreciation due to significant disparities between the official and parallel exchange rates. In response to rising inflation (22% in April 2023), the CBN has implemented policy rate increases totaling 700 basis points since April 2022, with the current rate standing at 18.5%.

The affirmation of UBA’s ratings by Fitch in the face of a challenging operating environment underscores the bank’s resilience and strategic positioning. UBA’s pan-African strength and competitive advantage in capitalizing on business and trade flows position it favorably amidst regional expansion efforts. However, as Nigeria’s banking sector grapples with ongoing reforms and currency volatility, UBA must navigate the potential risks associated with high sovereign exposure and leverage concerns.

UBA’s commitment to maintaining stability, capitalizing on its strong franchise, and embracing evolving market dynamics reaffirms its position as a leading player in the Nigerian banking landscape. Fitch’s endorsement of UBA’s ratings and Stable Outlook acknowledges the bank’s prudent risk management practices and underscores its ability to adapt to changing market conditions. As Nigeria continues on its path of economic transformation, UBA’s strategic vision and pan-African presence position it to seize emerging opportunities and solidify its position as a key financial institution in the region.

RelatedPosts

Ghana in Trade Talks With US Over Tariffs and Renewal of AGOA, Says President Mahama

Local Bourse Posts 70% YTD Gain on Renewed Interest in Large-Cap Counters

Central Bank Advances Virtual Asset Regulation With Draft Bill and Industry Registration Drive

Tags: Fitch RatingsFitch Ratings affirms UBA at 'B-' with stable outlookUBA
No Result
View All Result

Highlights

In the Balance: Manchester United’s Dreams Hang by a Thread as Amorim’s Future Wavers

FIFA Vice-President Warns European Fans of Late Nights for World Cup 2026 Kick-Offs

UEFA Champions League: Late Drama as PSG, Arsenal, and Qarabağ Continue Winning Streaks

EIA Rattles Oil Markets With Reports of Crude Oil, Product Builds

Dams for Development? Unpacking Tensions in the World Bank’s Hydropower Policies

Chart of the Week: Dollar’s Share of Reserves Held Steady in Second Quarter When Adjusted for FX Moves

Trending

Business

Ghana in Trade Talks With US Over Tariffs and Renewal of AGOA, Says President Mahama

October 2, 2025

Ghana in Trade Talks With US Over Tariffs and Renewal of AGOA, Says President Mahama Ghana has...

Local Bourse Posts 70% YTD Gain on Renewed Interest in Large-Cap Counters

October 2, 2025

Central Bank Advances Virtual Asset Regulation With Draft Bill and Industry Registration Drive

October 2, 2025

In the Balance: Manchester United’s Dreams Hang by a Thread as Amorim’s Future Wavers

October 2, 2025

FIFA Vice-President Warns European Fans of Late Nights for World Cup 2026 Kick-Offs

October 2, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.