Ratings are assigned following 6 June 2018 update to Moody's Banks rating methodology
Limassol, June 20, 2018 -- Moody's Investors Service, ("Moody's") has
today assigned Counterparty Risk Ratings (CRR) to 48 banks and their branches.
These banks are domiciled in the following 14 countries : Angola,
the Democratic Republic of the Congo, Egypt, Ghana,
Jordan, Kenya, Lebanon, Mauritius, Morocco,
Nigeria, Pakistan, South Africa, Tanzania and Tunisia.
Moody's CRR are opinions of the ability of entities to honor the
uncollateralized portion of non-debt counterparty financial liabilities
(CRR liabilities) and also reflect the expected financial losses in the
event such liabilities are not honored. CRR liabilities typically
relate to transactions with unrelated parties. Examples of CRR
liabilities include the uncollateralized portion of payables arising from
derivatives transactions and the uncollateralized portion of liabilities
under sale and repurchase agreements. CRRs are not applicable to
funding commitments or other obligations associated with covered bonds,
letters of credit, guarantees, servicer and trustee obligations,
and other similar obligations that arise from a bank performing its essential
operating functions.
RATINGS RATIONALE
In assigning CRRs to the banks and branches subject to this rating action,
Moody's starts with the banks' adjusted Baseline Credit Assessment
(BCA) and uses the agency's basic Loss-Given-Failure
(LGF) approach which is applied to banks in jurisdictions without operational
resolution regimes. For these banks Moody's believes that
CRR liabilities have a lower probability of default than the bank's
deposits and senior unsecured debt as they will more likely be preserved
in order to minimize banking system contagion, minimize losses and
avoid disruption of critical functions. For this reason,
Moody's assigns the CRR, prior to government support, one
notch above the adjusted BCA, unless the adjusted BCA is already
two notches above the government rating.
Furthermore for these banks, Moody's considers the likelihood
of government support for CRR liabilities to be in line with Moody's
support assumptions on deposits and senior unsecured debt, resulting
in additional notches of uplift from their respective adjusted BCAs,
reflecting each bank's importance to its domestic banking systems.
The CRR liabilities will not benefit from any government support if the
CRR, prior to government support, is already at or above the
government rating level.
NATIONAL SCALE RATINGS (NSRs)
Moody's NSRs are generated by mapping from the local-currency global
scale ratings using country-specific maps. See below for
country specific considerations.
The following ratings were assigned:
ANGOLA
-- Banco Angolano de Investimentos, S.A.
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, one notch above its adjusted BCA of b3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
-- Banco Economico, S.A.
Local currency and foreign currency long-term Counterparty Risk
Ratings of B3, two notches above its adjusted BCA of caa2
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
DEMOCRATIC REPULIC OF THE CONGO
-- Rawbank
Local currency and foreign currency long-term Counterparty Risk
Ratings of B3, at the same level as its adjusted BCA of b3 and capped
by the relevant country ceilings
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
EGYPT
-- Bank of Alexandria SAE
Local currency long-term Counterparty Risk Rating of B1,
one notch above its adjusted BCA of b2
Foreign currency long-term Counterparty Risk Rating of B2,
capped by the relevant country ceilings
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime.
-- Banque du Caire SAE
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, one notch above its adjusted BCA of b3.
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
-- Banque Misr SAE
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, one notch above its adjusted BCA of b3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
-- Commercial International Bank (Egypt) SAE
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, one notch above its adjusted BCA of b3.
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
-- National Bank of Egypt SAE
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, one notch above its adjusted BCA of b3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
GHANA
-- GCB Bank Limited
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, one notch above its adjusted BCA of b3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
JORDAN (Including Foreign Branches)
-- Arab Bank PLC
Local currency and foreign currency long-term Counterparty Risk
Ratings of Ba2, in line with its adjusted BCA of ba2 and already
two notches above Jordan's B1 bond rating
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
-- Arab Bank Plc (Dubai Branch)
Foreign currency long-term Counterparty Risk Ratings of Ba2
Foreign currency short-term Counterparty Risk Ratings of Not Prime
-- Cairo Amman Bank
Local currency and foreign currency long-term Counterparty Risk
Ratings of Ba3, one notch above its adjusted BCA of b1
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
-- Housing Bank for Trade and Finance (The)
Local currency and foreign currency long-term Counterparty Risk
Ratings of Ba3, one notch above its adjusted BCA of b1
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
KENYA
-- Co-operative Bank of Kenya Limited
Local currency and foreign currency long-term Counterparty Risk
Ratings of B1, one notch above its adjusted BCA of b2
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
Long-term local currency Kenyan national scale Counterparty Risk
Ratings of Aaa.ke and short-term of KE-1
-- Equity Bank Kenya Limited
Local currency and foreign currency long-term Counterparty Risk
Ratings of B1, one notch above its adjusted BCA of b2
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
Long-term local currency Kenyan national scale Counterparty Risk
Ratings of Aaa.ke and short-term of KE-1
-- KCB Bank Kenya Limited
Local currency and foreign currency long-term Counterparty Risk
Ratings of B1, one notch above its adjusted BCA of b2
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
For Kenya, a global-scale rating of B1 maps to Aaa.ke-Aa2.ke
on the national scale. Equity Bank Kenya Limited's and Co-Operative
Bank of Kenya Limited's Aaa.ke/KE-1 NSRs map at the higher
end of the corresponding range, indicating that these banks' CRRs
are strongly positioned compared with other domestic issuers.
LEBANON
--- Bank Audi S.A.L.
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, one notch above the bank's b3 Adjusted BCA
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
Long-term local currency Lebanese national scale Counterparty Risk
Ratings of Aa3.lb and short-term of LB-1
--- BLOM BANK S.A.L.
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, one notch above the bank's b3 Adjusted BCA
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
Long-term local currency Lebanese national scale Counterparty Risk
Ratings of Aa3.lb and short-term of LB-1
--- Byblos Bank S.A.L.
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, one notch above the bank's b3 Adjusted BCA
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
Long-term local currency Lebanese national scale Counterparty Risk
Ratings of Aa3.lb and short-term of LB-1
For Lebanon, a global-scale rating of B2 maps to Aa3.lb-A2.lb
on the national scale. All banks' Aa3.lb/LB-1
NSRs map at the higher end of the corresponding range, indicating
that these banks' CRRs are strongly positioned compared with other domestic
issuers.
MAURITIUS
-- Mauritius Commercial Bank Limited
Local currency and foreign currency long-term Counterparty Risk
Ratings of Baa2, two notches above its adjusted BCA of ba1
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-2
-- SBM Bank (Mauritius) Ltd.
Local currency and foreign currency long-term Counterparty Risk
Ratings of Baa2, two notches above its adjusted BCA of ba1
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-2
MOROCCO
-- Attijariwafa Bank
Local currency and foreign currency long-term Counterparty Risk
Ratings of Ba1, two notches above its adjusted BCA of ba3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
Local currency and foreign currency long-term Moroccan national
scale Counterparty Risk Ratings of Aa1.ma and short-term
of MA-1
-- BMCE Bank
Local currency and foreign currency long-term Counterparty Risk
Ratings of Ba1, three notches above its adjusted BCA of b1
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
Local currency and foreign currency long-term Moroccan national
scale Counterparty Risk Ratings of Aa2.ma and short-term
of MA-1
-- Credit du Maroc
Local currency and foreign currency long-term Counterparty Risk
Ratings of Baa3, one notch above its adjusted BCA of ba1
Local currency and foreign currency short-term Counterparty Risk
Ratings of P-3
Local currency and foreign currency long-term Moroccan national
scale Counterparty Risk Ratings of Aaa.ma and short-term
of MA-1
-- Groupe Banque Centrale Populaire
Local currency and foreign currency long-term Counterparty Risk
Ratings of Ba1, two notches above its adjusted BCA of ba3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
Local currency and foreign currency long-term Moroccan national
scale Counterparty Risk Ratings of Aa1.ma and short-term
of MA-1
For Morocco, global-scale ratings of Baa3 map to Aaa.ma
on the national scale, which leads to Credit du Maroc's NSR
CRRs of Aaa.ma/MA-1 the highest possible NSR rating.
Global scale ratings of Ba1 map to Aaa.ma-Aa2.ma
on the national scale. Attijariwafa Bank and Groupe Banque Centrale
Populaire's CRRs map to Aa1.ma/MA-1 at the midpoint
of the corresponding range, indicating that these banks' CRRs are
also strongly positioned, while BMCE Bank's map to Aa2.ma/MA-1
at the lower end of the corresponding range.
NIGERIA
-- Access Bank Plc
Local currency and foreign currency long-term Counterparty Risk
Ratings of B1, one notch above its adjusted BCA of b2
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
Local currency and foreign currency long-term Nigerian national
scale Counterparty Risk Ratings of Aa1.ng
Local currency and foreign currency short-term Nigerian national
scale Counterparty Risk Ratings of NG-1
-- First Bank of Nigeria Limited
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, one notch above its adjusted BCA of b3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
Local currency and foreign currency long-term Nigerian national
scale Counterparty Risk Ratings of A2.ng
Local currency and foreign currency short-term Nigerian national
scale Counterparty Risk Ratings of NG-1
-- Guaranty Trust Bank Plc
Local currency and foreign currency long-term Counterparty Risk
Ratings of B1, one notch above its adjusted BCA of b2
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
Local currency and foreign currency long-term Nigerian national
scale Counterparty Risk Ratings of Aaa.ng
Local currency and foreign currency short-term Nigerian national
scale Counterparty Risk Ratings of NG-1
-- Sterling Bank Plc
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, one notch above its adjusted BCA of b3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
Local currency and foreign currency long-term Nigerian national
scale Counterparty Risk Ratings of A2.ng
Local currency and foreign currency short-term Nigerian national
scale Counterparty Risk Ratings of NG-1
-- Union Bank of Nigeria plc
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, one notch above its adjusted BCA of b3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
Local currency and foreign currency long-term Nigerian national
scale Counterparty Risk Ratings of A2.ng
Local currency and foreign currency short-term Nigerian national
scale Counterparty Risk Ratings of NG-1
-- United Bank for Africa Plc
Local currency and foreign currency long-term Counterparty Risk
Ratings of B1, one notch above its adjusted BCA of b2
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
Local currency and foreign currency long-term Nigerian national
scale Counterparty Risk Ratings of Aa1.ng
Local currency and foreign currency short-term Nigerian national
scale Counterparty Risk Ratings of NG-1
-- Zenith Bank Plc
Local currency and foreign currency long-term Counterparty Risk
Ratings of B1, one notch above its adjusted BCA of b2
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
Local currency and foreign currency long-term Nigerian national
scale Counterparty Risk Ratings of Aaa.ng
Local currency and foreign currency short-term Nigerian national
scale Counterparty Risk Ratings of NG-1
For Nigeria, global-scale ratings of B1 map to Aaa.ng-Aa2.ng
on the national scale. Guaranty Trust Bank Plc's and Zenith
Bank Plc's CRRs map to Aaa.ng/NG-1 at the higher end
of the corresponding range, indicating that these banks' CRRs are
strongly positioned amongst domestic peers, while Access Bank Plc's
and United Bank for Africa Plc's map to Aa1.ng/NG-1
at the midpoint of the corresponding range. Global scale ratings
of B2 map to Aa3.ng-A2.ng on the national scale.
First Bank of Nigeria Limited's, Sterling Bank Plc's
and Union Bank of Nigeria plc's CRRs map to A2.ng/NG-1
at the lower end of the corresponding range.
PAKISTAN
-- Allied Bank Limited
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, one notch above its adjusted BCA of b3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
-- Habib Bank Ltd.
Local currency and foreign currency long-term Counterparty Risk
Ratings of B3, one notch above its adjusted BCA of caa1
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
-- MCB Bank Limited
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, one notch above its adjusted BCA of b3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
-- National Bank of Pakistan
Local currency and foreign currency long-term Counterparty Risk
Ratings of B3, one notch above its adjusted BCA of caa1
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
-- United Bank Ltd.
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, one notch above its adjusted BCA of b3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
SOUTH AFRICA
-- Absa Bank Limited
Local currency and foreign currency long-term Counterparty Risk
Ratings of Baa2, one notch above its adjusted BCA of baa3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Prime-2
Long-term South African local currency national scale Counterparty
Risk Ratings of Aaa.za and short-term of P-1.za
-- FirstRand Bank Limited
Local currency and foreign currency long-term Counterparty Risk
Ratings of Baa2, one notch above its adjusted BCA of baa3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Prime-2
Long-term South African local currency national scale Counterparty
Risk Ratings of Aaa.za and short-term of P-1.za
-- Investec Bank Ltd.
Local currency and foreign currency long-term Counterparty Risk
Ratings of Baa2, one notch above its adjusted BCA of baa3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Prime-2
Long-term South African local currency national scale Counterparty
Risk Ratings of Aaa.za and short-term of P-1.za
-- Nedbank Limited
Local currency and foreign currency long-term Counterparty Risk
Ratings of Baa2, one notch above its adjusted BCA of baa3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Prime-2
Long-term South African local currency national scale Counterparty
Risk Ratings of Aaa.za and short-term of P-1.za
-- The Standard Bank of South Africa Limited
Local currency and foreign currency long-term Counterparty Risk
Ratings of Baa2, one notch above its adjusted BCA of baa3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Prime-2
Long-term South African local currency national scale Counterparty
Risk Ratings of Aaa.za and short-term of P-1.za
For South Africa, global-scale ratings of Baa2 or above map
to Aaa.za only on the national scale, indicating that these
banks' CRRs are strongly positioned domestically.
TANZANIA
-- CRDB Bank Plc
Local currency and foreign currency long-term Counterparty Risk
Ratings of B1, one notch above its adjusted BCA of b2
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
-- NMB Bank PLC
Local currency and foreign currency long-term Counterparty Risk
Ratings of Ba3, one notch above its adjusted BCA of b1
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
TUNISIA
-- Amen Bank
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, two notches above its adjusted BCA of caa1
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
-- Arab Tunisian Bank
Local currency and foreign currency long-term Counterparty Risk
Ratings of B1, one notch above its adjusted BCA of b2
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
-- Banque Internationale Arabe de Tunisie
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, one notch above its adjusted BCA of b3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
-- Banque de Tunisie
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, one notch above its adjusted BCA of b3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
-- Societe Tunisienne de Banque
Local currency and foreign currency long-term Counterparty Risk
Ratings of B2, four notches above its adjusted BCA of caa3
Local currency and foreign currency short-term Counterparty Risk
Ratings of Not Prime
What Could Change the Rating Up/Down
The CRR may be upgraded if there is a strengthening in banks' operating
environment or financial fundamentals in a way that will lead to an upgrade
of their adjusted BCA or if Moody's revises upwards its assessment
of authorities' willingness to provide support or if Moody's
revises upwards its assessment of the government's capacity to provide
support, captured by an upgrade in the sovereign ratings or related
ceilings.
The CRR may be downgraded if there is a weakening in banks' operating
environment or financial fundamentals in a way that will lead to a downgrade
of their adjusted BCA or if Moody's revises downwards its assessment
of authorities' willingness to provide support or if Moody's
revises downwards its assessment of the government's capacity to
provide support, captured by a downgrade in the sovereign ratings
or related ceilings.
The CRR may also be impacted if the country, where banks operate
in, implements an operational resolution regime.
PRINCIPAL METHODOLOGY
The principal methodology used in these ratings was Banks published in
June 2018. Please see the Rating Methodologies page on www.moodys.com
for a copy of this methodology.
Moody's National Scale Credit Ratings (NSRs) are intended as relative
measures of creditworthiness among debt issues and issuers within a country,
enabling market participants to better differentiate relative risks.
NSRs differ from Moody's global scale credit ratings in that they are
not globally comparable with the full universe of Moody's rated entities,
but only with NSRs for other rated debt issues and issuers within the
same country. NSRs are designated by a ".nn"
country modifier signifying the relevant country, as in ".za"
for South Africa. For further information on Moody's approach to
national scale credit ratings, please refer to Moody's Credit rating
Methodology published in May 2016 entitled "Mapping National Scale Ratings
from Global Scale Ratings". While NSRs have no inherent absolute
meaning in terms of default risk or expected loss, a historical
probability of default consistent with a given NSR can be inferred from
the GSR to which it maps back at that particular point in time.
For information on the historical default rates associated with different
global scale rating categories over different investment horizons,
please see https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1113601.
The Local Market analyst for Attijariwafa Bank, BMCE Bank,
Credit du Maroc and Groupe Banque Centrale Populaire is Olivier Panis,
+971.4.237.9533.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,
this announcement provides certain regulatory disclosures in relation
to each rating of a subsequently issued bond or note of the same series
or category/class of debt or pursuant to a program for which the ratings
are derived exclusively from existing ratings in accordance with Moody's
rating practices. For ratings issued on a support provider,
this announcement provides certain regulatory disclosures in relation
to the credit rating action on the support provider and in relation to
each particular credit rating action for securities that derive their
credit ratings from the support provider's credit rating.
For provisional ratings, this announcement provides certain regulatory
disclosures in relation to the provisional rating assigned, and
in relation to a definitive rating that may be assigned subsequent to
the final issuance of the debt, in each case where the transaction
structure and terms have not changed prior to the assignment of the definitive
rating in a manner that would have affected the rating. For further
information please see the ratings tab on the issuer/entity page for the
respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Items color coded in purple in this Press Release relate to unsolicited
ratings for a rated entity which is non-participating.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead rating analyst and the Moody's legal entity that has issued
the ratings.
The relevant office for each credit rating is identified in "Debt/deal
box" on the Ratings tab in the Debt/Deal List section of each issuer/entity
page of the website.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Christos Theofilou, CFA
VP-Senior Analyst
Financial Institutions Group
Moody's Investors Service Cyprus Ltd.
Porto Bello Building
1, Siafi Street, 3042 Limassol
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
Sean Marion
MD - Financial Institutions
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
Releasing Office:
Moody's Investors Service Cyprus Ltd.
Porto Bello Building
1, Siafi Street, 3042 Limassol
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454
