Fitch Ratings has upgraded Coronation Merchant Bank Long-Term Issuer Default Rating (IDR) to ‘B-‘ from ‘CC’ and its Viability Rating (VR) to ‘b-‘ from ‘cc’.
Fitch has also upgraded the bank’s National Long-Term Rating to ‘BBB-(nga)’ from ‘B+(nga)’, with the Outlooks on the Long-Term IDR and National Long-Term Rating rated Stable.
The upgrade reflects the robust improvement in the bank’s capital position, following the completion of a rights issue and the sale of foreign currency-denominated equity investments, a statement on the ratings stated.
Fitch, noted that the substantial upgrade reflects the agency’s view that funding instability risks had receded, due to the strengthening of Coronation Merchant Bank’s capital base.
The ratings agency also attributed the assessment to an improvement in the bank’s core profitability, aided by the softening of the Cash Reserve Ratio (CRR) regime for merchant banks.
“Coronation…
Source: Thisday Newspaper
