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Fitch rates Access Bank’s senior notes ‘B’

Fitch Ratings has assigned Netherlands-based Access Finance BV’s USD350m issue of guaranteed unsecured unsubordinated notes a Long-term rating of ‘B’ and Recovery Rating ‘RR4’. The … Continue reading Fitch rates Access Bank’s senior notes ‘B’


Fitch Ratings has assigned Netherlands-based Access Finance BV’s USD350m issue of guaranteed unsecured unsubordinated notes a Long-term rating of ‘B’ and Recovery Rating ‘RR4’. The Recovery Rating for the issue is in accordance with Fitch’s soft cap for Nigeria.

RATING ACTION RATIONALE

The notes’ rating is aligned with the Long-term Issuer Default Rating (IDR) of its 100%-parent, Access Bank Plc (Access, ‘B’/Stable) based on Fitch’s belief that Access will support debt issued by Access Finance BV, if required. The notes are expressed to be unconditionally and irrevocably guaranteed.

RATING DRIVERS AND SENSITIVITIES – IDRS, NATIONAL RATINGS AND SENIOR DEBT

Access Finance’s senior notes’ ratings would be sensitive and directly-linked to any change in Access’s Long-term IDR. An upgrade or downgrade to Access’s ratings would result in similar action to Access Finance’s senior notes’ ratings.

Access’s IDRs and National Ratings are derived from Fitch’s perceived level of support from the authorities if required. The bank’s ratings are sensitive to a reduction in the level of support Fitch views would be forthcoming from the Nigerian authorities – either through indications of a reduced willingness to support or the ability to do so. The latter could be signalled by a downgrade of Nigeria’s ‘BB-‘ sovereign rating.

Access is rated as follows:

Long-term foreign currency IDR: ‘B’. Stable Outlook

Short-term foreign currency IDR: ‘B’

National Long-term rating: ‘A-(nga)’

National Short-term rating: ‘F2(nga)’

Viability Rating: ‘b-‘

Support Rating: ‘4’

Support Rating Floor: ‘B’

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