Tag fitch rating agency rates gtbank at b with stable outlook

According to the Fitch Ratings agency, Guaranty Trust Bank (GTBank) has been assigned a Long-Term Issuer Default Rating (IDR) of 'B' with a Stable Outlook.

Here's a breakdown of the rating:

• Long-Term IDR: 'B'
• Short-Term IDR: 'B'
• Viability Rating: 'b-'
• Support Rating: '5'
• Support Rating Floor: 'NF'

The 'B' Long-Term IDR reflects GTBank's strong franchise, robust risk management, and solid financial performance. However, it also takes into account the bank's relatively high leverage, moderate asset quality, and exposure to Nigeria's macroeconomic risks.

The Stable Outlook indicates that Fitch Ratings does not expect any significant changes to GTBank's credit profile over the next 12-18 months.

Here are some key factors that contributed to the rating:

• Strong franchise: GTBank has a strong brand and a large customer base in Nigeria, which provides a stable source of funding and deposit growth.
• Robust risk management: The bank has a robust risk management framework, which helps to mitigate potential losses from its lending and investment activities.
• Solid financial performance: GTBank has consistently reported strong financial performance, with high returns on equity and assets.
• High leverage: The bank's leverage is relatively high, which increases its vulnerability to market and economic shocks.
• Moderate asset quality: GTBank's asset quality is moderate, with some non-performing loans and a high level of provisioning.
• Exposure to Nigeria's macroeconomic risks: The bank is exposed to Nigeria's macroeconomic risks, including inflation, currency volatility, and regulatory challenges.

Overall, the 'B' Long-Term IDR with a Stable Outlook reflects GTBank's strong franchise and solid financial performance, but also acknowledges the bank's relatively high leverage and moderate asset quality.