Moody’s Declares Sterling Bank Stable, Assigns B2 Rating | Independent Newspapers Limited
Newsletter subscribe


Moody’s Declares Sterling Bank Stable, Assigns B2 Rating

Posted: Jul 16, 2015 at 12:18 am   /   by   /   comments (0)

By Bamidele Ogunwusi,  Lagos


Moody’s Investors Service, an accomplished and highly respected international ratings agency, has further confirmed the resilience of Sterling Bank in Nigeria’s competitive banking sector by assigning a Local and Foreign Currency Issuer and Deposit Ratings of B2 with stable outlook.

The agency in a release made available to newsmen in Lagos, described Sterling Bank as a stable financial institution with solid quality assets, robust Information Technology and strong risk management systems.

The Agency also assigned a Counterparty Risk Assessment (CRA) of B1(cr)/Not Prime(cr) to the bank and declared all ratings of the bank stable.

While Nigeria’s economy features some institutional and structural weaknesses that can pose challenges to the banks, Sterling Bank, according to Moody’s has also shown strong resilience to shocks and it presents sizable growth opportunities, which will allow the bank to expand steadily.

The agency noted that its Baseline Credit Assessment (BCA) also reflects the bank’s solid liability profile. “The bank is predominantly deposit funded with a low reliance on more sensitive market funds.”