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Fitch Ratings has affirmed the Long Term Issuer Default rating of United Bank for Africa Plc at “B”, with a stable outlook.
According to Fitch, the rating of UBA is driven by the standalone creditworthiness of the bank, as defined by its viability rating, which is constrained by Nigeria’s operating environment.
In the report issued on Wednesday, Fitch highlighted the lender’s systemic importance, franchise and internationalisation across 19 African countries.
Fitch said it viewed UBA’s earnings and profitability positively, especially as its reported impaired loans/gross loans ratio (Non Performing Loan Ratio) remained relatively low around four per cent.
Assessing the bank’s loan portfolio, Fitch noted that, “Corporate lending dominates the loan book, but much of it is collateralised. UBA’s exposure to the oil and gas sector represents 20 per cent of total loans, lower than the 30 per cent sector average.
This is a reflection of the diversified structure of UBA’s credit portfolio and an apparent evidence of the sound risk management of the bank.”
Photo Caption: UBA LOGO
