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Datapro Reaffirms AA- Rating On Zenith Bank

Leading national Credit Rating Agency (CRA), DataPro®, says it has reaffirmed Zenith Bank Plc’s Long-Term rating of AA- with a stable outlook for the year 2020/2021, which it says indicates the bank’s lower risk.

The rating, according to a statement by AbimbolaAdeseyoju, Managing Director/CEO, shows excellent Financial Strength, Operating Performance, and Profile when compared to the standards established by DataPro.

“This bank, in our opinion, has a very strong ability to meet its ongoing obligation,” the CEO said, recalling that the DataPro Rating Committee approved the rating after assessing the company’s financial performance, earnings profile, liquidity, corporate governance, regulatory compliance and sustainability in the medium to long-term.

“The rating of Zenith Bank Plc is supported by its diversified revenue base, experienced management team, strong liquidity and good capitalization,” the statement stressed, noting, however, that the rating is constrained by concentration risk and a huge portfolio of unsecured credit.

Zenith Bank Plc subsequently got a Short-Term Rating of A1, which indicates good credit quality and satisfactory capacity for timely payment of financial commitments.

DataPro noted that “the rating carries a maximum shelf life of 12 calendar months, in line with international best practice,” even as it does not represent an offer to trade in securities, even as it is not a substitute for the user’s judgment, but for reference purposes.

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