Fitch ratings have upgraded United Bank for Africa Plc Long Term Issuer Default Rating (IDR) to ‘B+’, with stable outlook.
The global rating agency also upgraded the Viability Rating of the pan-African bank to “b+” from “b”.
The rating upgrade came on the back of consistent improvement in financial performance metrics, funding and liquidity.
According to Fitch, UBA’s IDRs are driven by its intrinsic creditworthiness, as defined by its viability rating (VR). Like all Nigerian banks, UBA’s VR is constrained by the operating environment in Nigeria (B+/Stable) where the fragile economic recovery restrains banks’ growth prospects and asset quality.
The VR reflects UBA’s position as one of Nigeria’s largest banks, as well as its sound financial metrics and reasonable capital buffers.
It controls an overall market share in Nigeria of approximately 10 per cent and its well-established franchise is a rating strength.
UBA is also Nigeria’s most international bank, operating in 20 other sub-Saharan African countries.