Fitch Ratings has upgraded United Bank for Africa Plc’s (UBA) Long-Term Issuer Default Rating (IDR) to ‘B+’ from ‘B’. The Outlook is Stable. UBA’s Viability Rating (VR) has been upgraded to ‘b+’ from ‘b’. A full list of rating actions is at the end of this rating action commentary.
The upgrades reflect an improvement in the bank’s performance metrics and funding and liquidity profile, which we consider to be sustainable. UBA’s strong capital ratios, increasingly diversified funding base and well managed liquidity mean that its risk profile is now more closely aligned with those of Zenith Bank and Guaranty Trust Bank, both rated ‘B+’.