International rating agency, Fitch Ratings has downgraded the credit ratings of First Bank of Nigeria Limited and United Bank of Africa, UBA.
The global rating agency said that the development was as a result of the recent downgrade of the nation’s sovereign credit rating.
Fitch said that while the outlook for Nigerian banks remain stable, recent devaluation of the naira, sustained low crude oil pricing and rising non-performing loans remain major threats to the industry.
In a statement announcing the result of its latest ratings of Nigerian banks, the Company said, “Fitch Ratings has downgraded First Bank of Nigeria Ltd’s (FBN) and United Bank for Africa’s (UBA) Long-Term Foreign Currency Issuer Default Ratings (IDRs) to ‘B’ from ‘B+’. The Outlooks are Stable.
The agency has also downgraded the National Long-Term Rating of FBN Holdings Plc (FBNH), the parent holding company of FBN, to ‘BBB+(nga)’ from ‘A(nga)’.