Fitch raises Access' Ratings on Business Combination Deal
International rating agency- Fitch Ratings at the weekend upgraded Access Bank -term issuer default rating (IDR) to 'B' from 'B-'. The ratings upgrade, according to Fitch, was partly influenced by the bank's successful merger with Intercontinental Bank.
The international agency also said that the upgrade was as a result of Access Bank's “support rating to '4' from '5' and the revision of the bank's support rating floor to 'B' from 'NF'.
Fitch explained further: “At the same time, the bank's national long-term rating was upgraded to 'A-(nga)' from 'BBB-(nga)' and its national short-term rating to 'F2(nga)' from 'F3(nga)'.
The rating actions by Fitch are as follows:
• Long-term foreign currency IDR: upgraded to 'B' from 'B-'. Stable Outlook
• Short-term foreign currency IDR: affirmed at 'B'
• National Long-term rating: upgraded to 'A-(nga)', from 'BBB-(nga)'
• National Short-term rating: upgraded to 'F2(nga)' from 'F3(nga)'
• Viability Rating: unaffected at 'b-'
• Support Rating: upgraded to '4' from '5'
• Support Rating Floor: revised to 'B' from 'NF'
The improved credit ratings should be welcome news for over 175,000 of its customers in Ghana as it consolidates the credit worthiness of the Access Bank Group.
At the end of the business combination with Intercontinental Bank in Ghana, the assets base of the merged entity grew to over GHS 929 million while its branch network also increased significantly to a total of 39 as at April 30, 2012. Access Bank Ghana's Capital Adequacy Ratio (CAR) also rose to 16 per cent, far above the minimum regulatory average of 10 per cent.
In line with the Bank's recent intention of becoming the “most respected Bank in Africa”, Access Bank Ghana is positioning its services to deliver superior value and quality banking services to its customers across the country.
Access Bank (Ghana) Limited is a subsidiary of Access Bank Plc, one of Africa's pre-eminent financial services groups ranked 4th in Nigeria and amongst Africa's top 10 banks according to The Bankers magazine. Access Bank Ghana has enjoyed one of the most successful banking growth trajectories over the last three years, achieving consistent performance across key indicators. Its recent merger with Intercontinental Bank Ghana (“IBG”) has created a formidable financial services franchise that ranks amongst the top 10 Banks in Ghana.
Currently, the Bank is leveraging on its geographical network to showcase its expertise in Trade Finance, Treasury and Technology driven banking solutions. The Bank is also supporting the growth of its host communities and key sectors of the economy including Telecommunications, Oil and gas, Manufacturing and Agriculture.