(The following statement was released by the rating agency)
Fitch Ratings-London-October 29:
Fitch Ratings has affirmed the National Long-Term Ratings of Stanbic IBTC Bank
PLC (SIBTC) and its non-operating holding company, Stanbic IBTC Holding Company
PLC (SIBTCH), at 'AAA(nga)' and National Short-Term Ratings at 'F1+(nga)'. A
full list of rating actions is at the end of this rating action commentary.
Key Rating Drivers
NATIONAL RATINGS AND SENIOR DEBT
The ratings of SIBTC and SIBTCH are based on potential support from their
ultimate parent, South Africa's Standard Bank Group (SBG; BB+/Negative), which
owns 65.9% of SIBTCH (which in turn owns 100% of SIBTC).
The National Ratings reflect SBG's ability to support the subsidiaries and the
group's willingness to do so. The ability to support considers SBG's 'BB+'
Long-Term IDR as well as Nigeria's Country Ceiling of 'B+'.
Fitch believes that SBG's willingness to support the group's Nigerian
subsidiaries is high. Factors considered include SIBTCH's and SIBTC's role in
the group as SBG's main operations in West Africa, the ownership size and high
operational integration. Fitch believes that SBG's support, if needed, would
extend equally to the bank and the holding company.
SIBTCH is the holding company for SBG's Nigerian operations. Its main operating
entity SIBTC, a mid-tier bank with a leading corporate and investment banking
franchise, forms 96% of the holding company's assets.
Fitch has also affirmed the National Long-Term Ratings on SIBTC's NGN30 billion
senior unsecured notes and the National Long and Short-Term Ratings on the
NGN150 billion structured note programme for senior unsecured debt.
RATING SENSITIVITIES
NATIONAL RATINGS AND SENIOR DEBT
Given Nigeria's Country Ceiling of 'B+', SIBTCH's and SIBTC's National Ratings
could withstand up to a two-notch downgrade of SBG's 'BB+' Long-Term
Foreign-Currency IDR before they would be affected. Downside risk to the ratings
could also stem from a decline in SBG's willingness or ability to provide
support, or from a change in SBG's stake, resulting in a loss of control.
A downgrade of Nigeria is unlikely to result in a downgrade of SIBTCH's or
SIBTC's National Ratings.
The ratings on the senior notes and programme are sensitive to changes in
SIBTC's National Long-and Short-Term Ratings.
Stanbic IBTC Holdings PLC; National Long Term Rating; Affirmed; AAA(nga)
; National Short Term Rating; Affirmed; F1+(nga)
Stanbic IBTC Bank PLC; National Long Term Rating; Affirmed; AAA(nga)
; National Short Term Rating; Affirmed; F1+(nga)
----senior unsecured; National Long Term Rating; Affirmed; AAA(nga)
----senior unsecured; National Short Term Rating; Affirmed; F1+(nga)
Contacts:
Primary Rating Analyst
Mahin Dissanayake,
Senior Director
+44 20 3530 1618
Fitch Ratings Ltd
30 North Colonnade, Canary Wharf
London E14 5GN
Secondary Rating Analyst
Kurt Boere,
Senior Analyst
+44 20 3530 2707
Committee Chairperson
Mark Young,
Managing Director
+44 20 3530 1318
Media Relations: Louisa Williams, London, Tel: +44 20 3530 2452, Email:
louisa.williams@thefitchgroup.com.
Additional information is available on www.fitchratings.com
Applicable Criteria
Bank Rating Criteria (pub. 12 Oct 2018)
https://www.fitchratings.com/site/re/10044408
National Scale Ratings Criteria (pub. 18 Jul 2018)
https://www.fitchratings.com/site/re/10038626
Short-Term Ratings Criteria (pub. 02 May 2019)
https://www.fitchratings.com/site/re/10073011
Additional Disclosures
Solicitation Status
https://www.fitchratings.com/site/pr/10099683#solicitation
Endorsement Policy
https://www.fitchratings.com/regulatory
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