Sunday, September 28, 2025
24.2 C
Lagos

UBA Suffers Credit Rating Downgrade by Moody’s over High Risk Profile

The United Bank for Africa (UBA) Plc has suffered credit rating meltdown as its rating has been placed on DOWNGRADE by Moody’s Investors Service over alleged liquidity squeeze and high risk profile arising from Nigeria’s unstable forex earnings, allocation and day-to-day operations. The ugly situation also extends to the asset quality of UBA Plc.

The Report by Moody’s states:

“Constraints on domestic oil production, capital outflows, and the increased cost of the country’s imported refined petroleum products, coupled with US dollar strengthening, have together weighed on the availability of foreign currency liquidity in the country despite higher oil prices and material discrepancies between official and parallel market exchange rates persist in the country.”

“Nigeria’s foreign exchange reserves have declined to $38 billion as of September 2022 from $40 billion as of January 2022 despite higher oil prices, and we understand that the central bank, which is the main provider of foreign exchange in the country, has consequently scaled down and become increasingly selective with its foreign currency allocations.”

The credit rating agency alleges that the existing market condition makes it particularly risky and difficult for UBA to meet its medium and long-term forex loan obligations.

 

spot_img
spot_img

Hot this week

AIICO Deepens Bond with Retirees, Holds Annuity Forum in Lagos, PH

Mr. Gbenga Ilori, Head, Retail Business at AIICO, in...

Sovereign Trust Insurance Holds 30th AGM

L-R: Eric Balogun, Independent Director, Emi Faloughi, Director, Kayode Adigun,...

Unity Bank Shareholders Approve Merger with Providus Bank

  EGM: From left: Mr. Usman Abdulkadir, Executive Director, Risk...

NNPCL: Ogoni Re-entry is a Beacon of Reconciliation through Collaboration

The re-entry into Ogoniland marks a historic turning point...

NLNG, NCDMB Celebrate 122 Graduates of Train 7 HCD Training Program

NLNG in collaboration with the Nigerian Content Development and...

Topics

CIIN President, Edwin Igbiti, Pays Courtesy Call on Sovereign Trust Insurance

L-R: Sanni Oladimeji, DGM, Risk Management and Compliance, Sovereign...

CIIN Empowers Over 50 Young Insurance Professionals at Boot Camp 3.0

L-R: Guest Speakers; Mr. Boniface Amadi, Head, Business Systems Automation, Continental Reinsurance...

Ecobank, Qatar Airways Celebrate Top Exhibitors at ‘Oja Oge’ Fair

Tomilola Fetuga (left), Head of Brand Management and Experiential Marketing,...

NDIC Budget Sensitisation, Strategic Session in Abuja

L – R Front: Adeola Oluwabiyi, Director, Internal Audit,...

Union Bank Rewards 452 Customers in UnionKorrect Draws 

Union Bank of Nigeria recently rewarded 452 UnionKorrect account...

A.M. Best Upgrades Africa Re to ‘A’ Rating

A.M. Best has upgraded the financial strength rating to...

Mutual Benefits Assurance: 2O Years of Creating Value!

Mutual Benefits Assurance Plc is 2O! At the 2Oth Anniversary...

Stanbic IBTC Celebrates Milestone with 10th Edition of Together4Alimb Charity Walk

L-R: Wole Adeniyi, Chief Executive, Stanbic IBTC Bank; Dr....
spot_img

Related Articles

Popular Categories

spot_imgspot_img