FBC Bank Limited

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FBC Bank Limited (2021-11)
  • FBC Bank Limited
  • Year : Nov 2021
3 Tokens
USD 300.00

The risk profile is a slight ratings positive, supported by sound asset quality metrics. Nonetheless, cognisance is taken of the prevailing challenging operating environment, which poses vulnerability to sector wide asset quality. The bank’s loan book is skewed toward the central bank, with high on-balance sheet concentration. However, this risk is mitigated by the fact that exposure was covered/ guaranteed by USD Treasury Bills linked to a USD line of credit from Afrexim Bank. Given the strong credit profile of Afrexim Bank, credit risk in that regard is lowered significantly.

Additional Information

The outlook is stable, balancing our expectation that FBCH will maintain a sound business profile supported by better than peer business diversification. There is limited upside potential over the outlook horizon, given the strained operating environment and just adequate levels of capitalisation. However, positive, or negative ratings movement could follow a change in asset quality or liquidity. Furthermore, negative ratings action may follow should the entity fail to meet capital expectations.

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