Datapro reaffirms Sterling Bank’s BBB+ rating
Datapro Limited, one of Nigeria’s leading credit rating agencies (CRA), has re- affirmed Sterling Bank BBB+ rating for the year 2016/2017.
The BBB+ rating indicates that the bank has a fair financial strength, operating performance and business profile when compared to the established standards. It further indicates that the bank has the ability to meet its on-going obligations subject to adverse changes in economic conditions.
The DataPro rating committee approved the rating after a review of the bank’s capitalisation, earnings profile, liquidity, quality of assets and sustainability of its current healthy profile in the medium to long-term period.
The rating is supported by the bank’s stable management and good liquidity ratio. The liquidity ratio of the bank at 44 per cent in 2015, was well above the regulatory requirement. The rating also took cognisance of the on-going N65billion capital raising programme of the bank.
Sterling Bank subsequently got a short-term rating of A2. This reflects the bank’s capacity for timely payment of financial commitments.
Datapro noted that in line with international best practice the rating carries a maximum shelf life of 12 calendar months.