DBN gets GCR’S ‘AAA’ long term rating with stable outlook
Aleading rating agency in Africa, Global Credit Ratings (GCR) has assigned the Development Bank of Nigeria a ‘AAA’ long term national scale rating with a stable outlook.
GCR said the ‘AAA’ credit rating conferred on DBN, reinforces the ‘‘unparalleled position of the bank in meeting short and long-term obligations while also reflecting the unrivaled strength of the guarantee of its wholly-owned subsidiary - Impact Credit Guarantee Limited, which provides credit enhancements to MSMES.’’
The conferment, which is the highest rating for financial institutions, is in line with the “risk-free” rating of the Nigerian Sovereign and attests to DBN’S strong fundamentals and credibility, GCR stated on its website.
GCR noted that DBN’S emergence as a leading financial institution reflects the Bank’s “strong capitalization, minimal risk exposure and stable funding structure, complemented by sound liquidity profile”.
It said this underscores DBN’S capacity to deliver on its mission of alleviating financing constraints faced by Micro, Small, and Medium Scale Enterprises (MSMES) in Nigeria.
“We are pleased with this debut rating of “AAA”, with a stable outlook, from GCR, one of the foremost rating agencies in Africa,” Tony Okpanachi, managing director/ceo, DBN noted in satisfaction with the development.
“We appreciate the rigorous and diligent assessment of GCR as it provides an additional layer of independent review of our governance and risk management practice, ESG principles, and broader management of the institution.
“More importantly, the outcome of the rating exercise, as expressed in our “AAA” national scale rating, is a testament to our balance sheet capacity, quality of the risk asset portfolio, and sound risk management practice.
‘‘We would continue to adhere to global best practice in market interventions, as we remain committed to alleviating financing constraints faced by MSMES and Small Corporates in Nigeria, through the provision of financing and partial credit guarantees to eligible financial intermediaries on a market-conforming and fully financially sustainable basis,” Okpanachi stated.
GCR further added that, the rating was in recognition of DBN’S strategic importance and developmental role in the provision of wholesale financing to eligible participating financial institutions (PFIS).
“The bank’s competitive position is supported by its clearly defined mandate, focused operation, and an ongoing performance monitoring and evaluation system.’’