December 3, 2012 / 1:16 PM / in 5 years

TEXT-S&P summary: Guaranty Trust Bank PLC

(The following statement was released by the rating agency)

Dec 03 -


Summary analysis -- Guaranty Trust Bank PLC ----------------------- 03-Dec-2012


CREDIT RATING: BB-/Stable/B Country: Nigeria

Primary SIC: Commercial banks,



Credit Rating History:

Local currency Foreign currency

09-Nov-2012 BB-/B BB-/B

24-Aug-2009 B+/B B+/B


Ratings Score Snapshot

Issuer Credit Rating BB-/Stable/B

SACP bb-

Anchor bb-

Business Position Adequate (0)

Capital and Earnings Adequate (0)

Risk Position Adequate (0)

Funding and Liquidity Average

and Adequate (0)

Support 0

GRE Support 0

Group Support 0

Sovereign Support 0

Additional Factors 0

Major Rating Factors


-- Strong franchise in top-tier corporate banking in Nigeria.

-- Capitalization supported by strong earnings capacity.

-- Diversified funding sources and strong liquidity indicators.


-- High economic and industry risk associated with operating in Nigeria.

-- Limited geographic and business diversification.

-- Lending concentration in loan portfolio.


Standard & Poor’s Ratings Services’ stable outlook on Guaranty Trust Bank PLC (GTB) reflects the stable economic environment and our view that the bank’s business and financial profiles will remain relatively unchanged over the next 12 months. In our view, the positive economic prospects in Nigeria will further support GTB’s business relationships and earnings capacity. We anticipate that GTB’s capitalization will increase slightly over the next 12-18 months owing to a strong earning capacity coming from high margins and low cost of risk. We also assume that GTB will maintain its stable funding and liquidity profile.

We would raise the ratings on GTB if the bank’s sector and single-name concentrations were to reduce, as well as if its cost of risk becomes significantly lower than sector peers. An upgrade would also require the long-term foreign currency sovereign ratings to be raised.

We could lower the ratings on GTB if its financial profile were to deteriorate significantly. Although unlikely, this could follow a sharp deterioration of asset quality or a change in risk appetite. A sovereign downgrade would trigger a downgrade of the bank.

Related Criteria And Research

All articles listed below are available on RatingsDirect on the Global Credit Portal, unless otherwise stated.

-- Banks: Rating Methodology And Assumptions, Nov. 9, 2011

-- Banking Industry Country Risk Assessment Methodology And Assumptions, Nov. 9, 2011

-- BICRA On Nigeria Revised To Group ‘8’ From Group ‘9’, Nov. 9, 2011

-- Bank Hybrid Capital Methodology And Assumptions, Nov. 1, 2011

-- Bank Capital Methodology And Assumptions, Dec. 6, 2010

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