Ecobank Nigeria Sees Credit Rating Cut by Fitch

Fitch Ratings has reaffirmed Ecobank Nigeria’s Long-Term Issuer Default Rating at ‘CCC’ but revised its assessment of the bank’s financial health downward. The global credit rating agency downgraded the bank’s Viability Rating to ‘f’, indicating a failure level, and lowered its National Long-Term Rating to ‘B+(nga)’ from ‘BB-(nga)’.

This decision follows months of concerns over the bank’s capital adequacy ratio, which has remained below regulatory thresholds since early 2024, despite significant forbearance from authorities.

Fitch attributed the drop in ratings to the bank’s sustained weak profitability, exposure to risky loans, and high credit concentrations. The agency also criticized the parent company, Ecobank Transnational Incorporated, for its delayed capital intervention, suggesting a poor track record in providing necessary support.

While Fitch acknowledged that the bank has sufficient liquidity to settle its remaining $150 million Eurobond maturing in February 2026, it warned that long-term risks of default persist due to ongoing foreign currency constraints and capital shortfalls. The outlook remains cautious, with the agency citing no significant deterioration in default risk for now.