Acquisition: GCR Places Union Bank Rating on Watch
GCR Ratings has placed Union Bank of Nigeria Plc.’s national scale long-term and short-term issuer ratings of BBB+(NG) and A2(NG) on rating watch evolving, the company said in a new rating note.
The ratings of Union Bank of Nigeria Plc have been placed on Rating Watch Evolving, due to the acquisition of majority shareholding by Titan Trust Bank Limited, which concluded in June 2022.
“We expect to resolve the Ratings Watch when the bank finalises the post-acquisition integration and presents the consolidated financial statements”, the rating note reads.
Meanwhile, GCR said the ratings of Union Bank of Nigeria could improve if its analysts believe the creditworthiness of the consolidated group uplifts that of the bank. READ: GCR Places LAPO MfB on Negative Rating Watch, Downgrades Lender Over Infractions
The rating firm explained that an improvement in the financial profile of the bank on a stand-alone basis would also be supportive of an upward review.
Conversely, GCR analysts said they would put a cap on the ratings if the ultimate parent is assessed to have a weaker credit profile.
A deterioration in the bank’s stand-alone credit profile would also trigger a downward review, the emerging market rating firm added. # Acquisition: GCR Places Union Bank Rating on Watch
