Datapro limited, one of Nigeria’s leading credit rating agencies, has reaffirmed Sterling Bank plc BBB+ rating for the year 2016/2017 following the lenders good liquidity, N65 billion capital raising among other indices.
The BBB+ indicates that the bank has fair financial strength, operating performance and business profile when compared to the established standards. It further indicates that the bank has the ability to meet its on-going obligations subject to adverse changes in economic conditions.
In a statement signed by Abimbola Adeseyoju, managing director/CEO, Datapro, the Datapro rating committee approved the rating after a review of the bank’s capitalisation, earnings profile, liquidity, quality of assets and sustainability of its current healthy profile in the medium to long-term period.
The rating is supported by the bank’s stable management and good liquidity ratio. The liquidity ratio of the bank at 44 percent in the year 2105 was well above the regulatory requirement. The rating also took cognisance of the on-going N65 billion capital raising program of the bank.
Sterling bank subsequently got a short term rating of A2, which reflects the bank’s capacity for timely payment of financial commitments.
