Fitch reaffirms Stanbic IBTC’s triple A rating
Fitch Ratings, the global leader in credit ratings and research, has re-affirmed the AAA (nga)’ ratings of Stanbic IBTC Holdings Plc. Stanbic IBTC was given a similar rating last year after a thorough examination of its credit process and financial results.
According to the bank, its diversified loan portfolio was reviewed with its impact on various sectors of the economy taken into account. Among economic sectors impacted by the bank included agriculture, construction, real estate and infrastructure; electricity among others.
The national rating provides a relative measure of credit worthiness for rated institutions in Nigeria and the AAA national rating is assigned to an institution with the lowest relative risk. In the ratings release, Fitch also maintained a stable outlook for Stanbic IBTC Holdings.
In its report, the rating agency also reviewed the capital adequacy of Stanbic IBTC in compliance with regulations and concluded that it was adequately capitalised noting that the capital adequacy ratio was above the regulatory requirement.
The bank explained that its liquidity position was also reviewed with the ability to meet foreign currency obligations as they fall due. The Group was certified as having adequate liquidity to meet both its short and long-term obligations.
It explained that Fitch also considered the strong parental support from Standard Bank Group, which has a majority stake in Stanbic IBTC Holdings Plc, as the group provides support in such areas as staff training, provision of information technology upgrades and best practice processes as well as strong corporate governance practices.