With a stable outlook for the year 2020/2021, Zenith Bank Plc’s long-term rating of AA has been re-affirmed by DataPro in its latest report.
The Rating Committee of DataPro, a leading National Credit Rating Agency (CRA) recognised and approved by the Securities & Exchange Commission (SEC), approved the Rating after assessment of the Company’s Financial Performance, Earnings Profile, Liquidity, Corporate Governance, Regulatory Compliance and Sustainability of its current healthy profile in the medium to long-term period.
The AA- Rating indicates Lower Risk and shows excellent Financial Strength, Operating Performance and Profile when compared to the standards established by DataPro.
DataPro said Zenith Bank has a very strong ability to meet its ongoing obligation.
The Rating of Zenith Bank Plc is supported by its diversified Revenue Base, Experienced Management Team, Strong Liquidity and Good Capitalization.
However, the Rating is constrained by Concentration Risk and 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 notes that the Rating carries a maximum shelf life of 12 calendar months, in line with international best practice. The Rating is therefore not an offer to trade in Securities nor a substitute for the user’s judgement and it is meant for reference purposes.