Union Bank Gets Agusto & Co ‘A-’ Rating

Fri, Sep 28, 2018 | By publisher


Banking Briefs

Agusto & Co. has assigned an “A-” rating on Union Bank of Nigeria Plc’s series 1 and series 2 combined N13.5 billion fixed rate senior unsecured issue. The issue was under the bank’s 2018 registered N100 billion debt insurance programme.

According to a statement from the Pan-African rating agency, the issue was senior to other unsecured obligations by the bank. “The issue is adjudged to offer adequate safety of timely payment of interest and principal. The assigned rating reflects the Issuer’s good capitalisation, ability to refinance, good brand equity, as well as an experienced management team.

“Favourable interest rates for borrowers, lower than the prevailing rates recorded between 2015 and 2017, have spurred a number of banks and other corporate entities to embark on debt issuance exercises in the year thus far.

“Agusto and Co. notes that such rates will not tarry for long, with upticks already being seen in Q3 2018. These upticks are largely driven by higher political uncertainty, larger government spending and increased government borrowing, alongside an increase in key benchmark rates in the United States of America.

“We expect interest rates to start to taper down from Q2 2019 – post elections, baring no political impasse,” it explained.

– Sept. 28, 2018 @ 17:47 GMT |

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