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Fitch Rates Access Bank's Tier 2 Note Issue 'B-'
June 18, 2014 / 3:51 PM / 3 years ago

Fitch Rates Access Bank's Tier 2 Note Issue 'B-'

(The following statement was released by the rating agency) LONDON, June 18 (Fitch) Fitch Ratings has assigned Access Bank's (Access; B/Stable) USD400m subordinated debt (Tier 2 notes) a final rating of 'B-' and Recovery Rating of 'RR6'. The notes, issued directly through the bank, have a coupon set at 9.25% and mature on June 24, 2021 with a five-year call option. The notes are part of the bank's USD1bn GMTN programme. KEY RATING DRIVERS The notes are subordinated, but there is no contractual non-viability loss absorption such as coupon flexibility, principal loss absorption or equity conversion features. They qualify as Tier 2 regulatory capital under current Central Bank of Nigeria regulations. Fitch has rated the notes one notch below Access's Viability Rating (VR) of 'b' to reflect below average loss severity for subordinated debt, relative to senior debt. No additional notches for non-performance risk have been applied. RATING SENSITIVITIES The notes' rating is sensitive to a change in Access's VR. In addition, the notching of the rating against the bank's VR could also potentially widen if Fitch believed that the recoveries available to the subordinated noteholders would be lower than currently assumed. Contact: Primary Analyst Mahin Dissanayake Director +44 20 3530 1618 Fitch Ratings Limited 30 North Colonnade London E14 5GN Secondary Analyst Andrew Parkinson Associate Director +44 20 3530 1420 Committee Chairperson Gordon Scott Managing Director +44 20 3530 1075 Media Relations: Elaine Bailey, London, Tel: +44 203 530 1003, Email: Elaine.Bailey@fitchratings.com; Hannah Huntly, London, Tel: +44 20 3530 1153, Email: hannah.huntly@fitchratings.com. Additional information is available on www.fitchratings.com Applicable criteria, 'Global Financial Institutions Rating Criteria' dated 31 January 2014, 'Recovery Ratings for Financial Institutions' dated 24 September 2013, 'Country-Specific Treatment of Recovery Ratings dated 28 June 2013 and 'Assessing and Rating Banks Subordinated and Hybrid Securities' dated 31 January 2014 are available at www.fitchratings.com. are available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here Recovery Ratings for Financial Institutions here Country-Specific Treatment of Recovery Ratings here Assessing and Rating Bank Subordinated and Hybrid Securities Criteria here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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