Business Briefings
Moody’s Upgrades Ecobank Outlook to Stable
Moody’s has revised the outlook on Ecobank Transnational Incorporated (ETI) to stable, citing the group’s improved financial performance and reduced risk exposure.
In its latest review, the rating agency affirmed ETI’s B3/Not Prime long- and short-term issuer ratings and noted the bank’s growing asset base, which stood at $28.9 billion as of March 2025. Moody’s highlighted ETI’s improved dividend flow and a decline in double leverage risk.
The stable outlook is also supported by expectations that Ecobank Nigeria’s recapitalisation will be completed by the end of 2025. ETI had earlier secured shareholder approval to raise $250 million in Additional Tier 1 (AT1) capital, with a portion earmarked for its Nigerian subsidiary.
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Additionally, the bank recently completed a tender offer for $150 million of its $300 million 2026 notes and secured investor consent to remove a covenant tied to capital adequacy. These actions, according to Moody’s, significantly reduce the risk of default.
Liquidity at the group level has also improved. ETI’s double leverage ratio dropped from 173% in 2023 to 168% at the end of 2024. Meanwhile, the holding company has refinanced short-term obligations with longer-term debt, enhancing financial flexibility.
In 2024, the group raised $400 million through senior unsecured notes and increased this by $125 million in May 2025, both maturing in 2029.
Moody’s also recognized the group’s improved asset quality and increasing dividend contributions from subsidiaries—rising from 14 in 2021 to 22 in 2024—as evidence of strengthened internal cash flow generation.
