Rating Agencies, Agusto & Co. and GCR upgrades Globus Bank credit rating

Rating Agencies, Agusto & Co. and GCR upgrades Globus Bank credit rating

Globus Bank has received an improved investment grade rating following an appraisal of the bank’s credit rating by two rating agencies – Agusto & Co and Global Credit Rating (GCR). Agusto & Co. upgraded the credit rating from its maiden rating of ‘Bbb-’ to ‘Bbb+’ during the current exercise while GCR affirmed an investment grade rating of ‘Bbb-‘ rating with a Positive Outlook.

Agusto & Co.’s upgrade of Globus Bank Limited’s rating from “Bbb-” to “Bbb+” was informed by the improvement in the bank’s strong shareholders’ support as reflected in the successful capital raising exercise which culminated in the bank being issued a national bank license by the Central Bank of Nigeria (CBN). The core shareholders and board members are well diversified with significant industry experience supporting the Bank in customer acquisition, particularly large corporates in different sectors of the economy.

Agusto & Co further assigned an ESG score of “3” as they believed the bank’s commitment to enshrining Environmental, Social and Governance issues in its operations has a material contribution to the Bank’s credit rating.

GCR also affirmed Globus Bank Limited’s national scale long and short-term issuer ratings of BBB-(NG) and A3(NG) respectively; with a Stable Outlook. The affirmation of the Bank’s ratings confirms its sound risk culture, good funding and liquidity profile whilst remaining competitive.

The ratings by both agencies reflect Globus Bank’s sound strategy supported by its
excellent growth and profitability with a sound risk management and governance framework.

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The bank’s revenue is driven by stable sources, with interest income from loans to total
interest income registering above 70% in June 2022 (December 2021: 57.2%; December 2020:
26.1%). The competitive position is constrained by a short track record, concentration risk in
terms of the twenty largest obligors as of December 2021 and limited geographical

Globus Bank delivers core banking services to a large pool of customers comprising corporate,
commercial, and retail segments through a network of 21 branches, agency partnerships, as well
as increased digitalization of platforms, enabling greater customer reach and market penetration.

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Originally Posted By Nairametrics
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