First Bank gets S&P “BB” rating

03.03.2008

First Bank of Nigeria Plc, Nigeria’s premier and reputable banking franchise, has reaffirmed its leadership position post-consolidation, with a rating from global rating agency, Standard & Poor’s Ratings Services (S&P), which assigned the bank the international Long-term rating of “BB-”, the best rating any Nigerian company could obtain, being the sovereign rating of the country.

With this, First Bank remains a national icon after over a century of operations with significant changes in the operating environment and the competitive landscape. The ratings, in which it was also assigned a Short-term rating of “B” and a stable outlook, reflect the bank’s strong market position as Nigeria’s leading financial services provider with robust funding and liquidity profile, sound risk governance, and the benefits derived from its expansion into the fast-developing retail banking market.

S&P stated that First Bank’s “position as one of Nigeria’s leading financial services providers is largely due to its extensive branch network and strong franchise, which has also afforded the bank a robust funding and liquidity profile.

“The high credit and operational risks associated with operating in Nigeria are partially mitigated by First Bank’s sound risk governance, which is progressing toward international standards,” the agency emphasised.

The stable outlook, according to S&P, reflected the opinion that First Bank will maintain a leading position in the banking industry, widening its franchise and carving a strong position in retail banking.