AGUSTO AFFIRMS “A” RATING, STABLE OUTLOOK FOR FIDELITY BANK

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Agusto & Co. hereby assigns an ‘A’ rating to Fidelity Bank Plc (‘Fidelity Bank’ or ‘the Bank’). The rating assigned reflects Fidelity Bank’s strong industry position as evidenced by its leading position in the tier 2 banking segment.

The rating also considers the Bank’s good liquidity position, strong ability to refinance, adequate capitalisation and satisfactory asset quality. We have also factored in Fidelity Bank’s good staff productivity and experienced management team.

However, constraining the aforementioned positives are the obligor concentration in the loan book and the Bank’s high operating cost profile. The assigned rating also reflects the impact of the harsh regulatory environment and prevailing macroeconomic headwinds accentuated by the COVID-19 pandemic.

We have attached a stable outlook to the rating of Fidelity Bank Plc. Our outlook is based on our expectation of controlled asset quality pressures and additional capital support should the proposed medium-term bond be successful.

The rating and outlook will be continually monitored to ascertain the impact of the adverse economic climate.

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