Moody’s Withdraws Union Bank  Ratings over Insufficient Information

Moody’s Withdraws Union Bank  Ratings over Insufficient Information

Moody’s Ratings has withdrawn ratings of Union Bank of Nigeria ratings, citing insufficient information from the commercial lender, according to a statement.

Effectively, Union Bank of Nigeria’s long-term deposit ratings, the Not Prime short-term deposit ratings, the long-term issuer and short-term issuer ratings, have been withdrawn.

Other affected rating include the bank’s the Caa1 foreign-currency long-term Counterparty Risk Rating (CRR), the B3 domestic-currency long-term Counterparty Risk Rating among others under Moody’s coverage.

Moody’s said prior to the withdrawal, the outlook on the long-term deposit ratings and long-term issuer ratings of Union Bank was stable.

“We have decided to withdraw the rating(s) because we believe we have insufficient or otherwise inadequate information to support the maintenance of the rating(s)”, Moody’s said.

Moody’s National Scale Credit Ratings (NSRs) are intended as relative measures of creditworthiness among debt issues and issuers within a country, enabling market participants to better differentiate relative risks.

Union Bank is a Nigeria-based bank established in 1917 as Colonial Bank. In June 2022, Titan Trust Bank Limited (TTB) acquired a 93.41% ownership stake in Union Bank from Union Global Partners Limited (a consortium of six investors), Atlas Mara Limited and other investors.

TTB acquired Union Bank’s remaining listed shares in May 2023, and Union Bank’s shares were de-listed from the Nigerian Stock Exchange in November 2023. Union Bank had total assets of NGN4.5 trillion ($3.1 billion) as of June 2024. #Moody’s Withdraws Union Bank  Ratings over Insufficient Information

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