GCR Ratings recently announced the upgrade of FCMB Group Plc’s national scale long-term issuer rating to A-(NG) from BBB+(NG), while the national scale short-term issuer rating was affirmed at A2(NG).
Simultaneously, GCR has upgraded the company’s national scale issue ratings on Series 1 N20.7 billion Additional Tier 1 Subordinated Bonds and Series 2 N26.0 billion Additional Tier 1 Subordinated Bonds to BBB(NG) from BBB-(NG), with the outlook maintained as Stable.
The ratings upgrade, the agency said, reflects the improvement in FCMB’s capital adequacy, supported by the additional capital injection and good internal earnings generation. The rating also balances the strong competitive position, adequate funding and liquidity position against the bank’s evolving risk profile.
It hinged the positive rating which is one-notch lower than the consolidated group, due to the subsisting structural subordination on the improved fundamentals of the group’s core operating entity, First City Monument Bank Limited.
This, it continued, reflects the Non-Operating Holding Company’s (NOHC) reliance on cash flows and dividends from the bank and other subsidiaries, which could be diverted by regulatory intervention at a time of stress.
The group is a financial service holding company in Nigeria with core operations in banking and an increasing presence in non-bank financial services through other subsidiaries.
The group had seven direct subsidiaries and three indirect subsidiaries as of 31 December 2025, with a growing franchise across different financial services areas including banking, consumer finance, investment management and investment banking.
Over the medium to long term, FCMB Group plans to further expand its footprint across other African countries, in line with its vision to be the premier financial services group of African origin.
The group also actively leverages technology to drive operational efficiency and business growth. For more information on the creditworthiness of the bank and group see here, published on the GCR website.
The Series 1 and Series 2 perpetual, non-cumulative, fixed-rate, resettable, additional tier 1 subordinated Bonds (the Series 1 and Series 2 AT1 Bonds) are the first two series to be issued under the Group’s N300 billion Debt Issuance Programme (the Programme).
In 2023, the Issuer raised a cumulative of N46.7 billion under the Programme through the Series 1 and Series 2 AT1 Bonds in February and October respectively, both at a resettable fixed coupon rate of 16%, with no scheduled maturity date.
The Series 1 and Series 2 AT1 Bonds qualified as AT1 capital for the Issuer under the approval of the regulator, Central Bank of Nigeria (CBN) and will constitute direct, unsecured, and subordinated obligations of the Issuer. The Series 1 and Series 2 AT1 Bonds shall rank pari passu among themselves and with any present and future parity obligations.
