The rating expires on 30 June 2022.
Agusto & Co. hereby upgrade the rating assigned to Development Bank of Nigeria Plc (‘DBN’ or ‘the Bank’) to ‘Aaa’. The rating takes into cognisance the support of the Bank’s shareholders – the Ministry of Finance Incorporated, Nigeria Sovereign Investment Authority (NSIA), African Development Bank (AfDB) and the European Investment Bank (EIB). AfDB and EIB are both rated ‘Aaa‘ by Standard and Poor, Moody’s and Fitch Ratings. Asides from equity contribution, AfDB provides long-term borrowings, technical and business support to DBN. The rating also considers the support of other international development finance institutions such as the French Development Agency (AFD), KfW, the German Development Bank and the World Bank who provides funding and technical support in addition to strengthening governance. Furthermore, DBN’s good asset quality, good capitalisation, good liquidity and experienced management team are also positive rating factors. However, constraining these is the limited operating history and weak macroeconomic fundamentals.
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