DataPro Limited, one of Nigeria’s leading Credit Rating Agencies (CRA), has re- affirmed Sterling Bank BBB+ rating for the year 2016/2017.
The BBB + rating indicates that the bank has a fair financial strength, operating performance and business profile when compared to the established standards. It further indicates that the bank has the ability to meet its on-going obligations subject to adverse changes in economic conditions.
The DataPro rating committee approved the rating after a review of the bank’s Capitalization, Earnings profile, Liquidity, Quality of assets and Sustainability of its current healthy profile in the medium to long-term period.
The rating is supported by the bank’s stable management and good liquidity ratio. The liquidity ratio of the bank at 44% in the year 2015 was well above the regulatory requirement. The rating also took cognisance of the on-going N65b capital raising program, of the bank.
Sterling Bank subsequently got a short term rating of A2. This reflects the bank’s capacity for timely payment of financial commitments.
“In line with international best practice, this rating carries a maximum shelf life of 12 calendar months. It should also be noted that the rating is not an offer to trade in securities and a substitute for the user’s judgement. It is meant for reference purposes,” DataPro noted.