Fitch Rates Access Bank's GMTN Programme 'B(EXP)'
The expected ratings of the programme apply only to the issuance of senior unsecured notes by Access Bank. There is no assurance that notes issued under the programme will be assigned a rating, or that the rating assigned to a specific issue under the programme will have the same rating as the programme.
KEY RATING DRIVERS
The programme's expected ratings are in line with Access Bank's Long - and Short-term Issuer Default Ratings (IDRs) of 'B' respectively. In Fitch's view, the likelihood of default on senior unsecured notes under the programme reflects the likelihood of default of the bank.
Access Bank's IDRs are driven by both potential support from the sovereign, if required, and standalone creditworthiness as defined by a Viability Rating (VR) of 'b'. While Nigeria's willingness to support domestic banks remains high, its ability to do so is weaker, particularly in foreign currency, due to challenging economic conditions. The bank's VR reflects an improving company profile, low impaired loans and healthy profitability as well as a tough operating environment in Nigeria.
RATING SENSITIVITIES
The programme's expected ratings are sensitive to a change in Access Bank's IDRs.
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