Fitch Ratings has affirmed a stable outlook on the foreign currency and the long-term Issuer Default Ratings of the United Bank for Africa Plc’s subsidiaries in Cameroon, Ghana and Senegal.
The lender said the entities, UBA Cameroon SA, UBA Ghana Limited and UBA Senegal SA, which are subsidiaries of the Nigeria-headquartered UBA, were rated “B-”, as constrained by the weak operating environment within which the three subsidiaries operate.
Fitch noted that the credit ratings and the stable outlook on UBA Cameroon, UBA Ghana and UBA Senegal were driven by the standalone financial strength of each of the subsidiaries, as reflected by their respective Viability Ratings.
In addition, the rating agency also noted potential support from their parent company, UBA Plc, in the event that such is
required.
According to Fitch, the subsidiaries are profitable and their ability to build up capital internally is positive because it will support UBA Plc’s ambitious growth plans for the subsidiaries.
Assessing the loan portfolio of the subsidiaries, the agency noted that the three subsidiaries lent to leading domestic corporate and public sector entities and such loans dominated the portfolio
of UBA subsidiaries in each of the respective
markets.
