Fitch Affirms 10 Nigerian Banks on Peer Review Stable Outlook

The following statement was released by the rating agency) LONDON, February 23 (Fitch) Fitch has affirmed the Long-term Issuer Default Ratings (IDRs) of 10 Nigerian banks. They are Zenith Bank Plc (Zenith), FBN Holdings Plc (FBNH), First Bank of Nigeria Ltd (FBN), United Bank for Africa Plc (UBA), Guaranty Trust Bank Plc (GTB), Access Bank Plc (Access), Diamond Bank Plc (Diamond), Fidelity Bank Plc (Fidelity), Union Bank Plc (Union) and First City Monument Bank Limited (FCMB). All Outlooks are Stable. Fitch has also affirmed the National Ratings of Stanbic IBTC Bank Plc (SIBTC) and Stanbic IBTC Holdings Plc (SIBTCH). A full list of rating actions is available at the end of this rating action commentary. The ratings are all in the 'B' range, indicating highly speculative fundamental credit quality, and factor in Fitch's expectation of increasingly challenging economic conditions and market volatility in Nigeria. The operating environment is affected by persistently low oil prices, continuing pressure on the domestic currency naira, likely further monetary policy and regulatory actions and increased political uncertainty. At the same time, the ratings are underpinned by continued strong underlying economic growth in Nigeria, particularly in non-oil sectors. Fitch expects non-oil GDP growth of 5.5% in 2015 (2014: 7.5%), driven by continued economic reforms and limited impact from public sector austerity. For more details see "2015 Outlook Nigerian Banks: Oil Shock and Policy Moves Test Bank Resilience and Ratings" on www.fitchratings.com. 

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