Onome Amuge
GCR Ratings has announced the suspension of its ratings for Union Bank of Nigeria Limited (UBN) and its N6.3 billion Series 2 Senior Unsecured Bonds. The ratings agency cited a lack of essential information, stating that UBN’s 2024 audited financial statements have not yet been approved by the Central Bank of Nigeria. Consequently, a review of the ratings could not be finalised due to a breach of the agency’s information sufficiency standard requirement.
The suspension, which was made without review, means that GCR is temporarily unable to provide a formal credit opinion on the bank. The ratings were last reviewed in August 2024, when GCR downgraded Union Bank’s national scale ratings to BBB-(NG)/A3(NG) from BBB+(NG)/A2(NG), citing capital deterioration.
GCR has stated that it will only reinstate the ratings and analytical coverage for UBN upon receiving the required information. The agency also noted that it will withdraw the ratings entirely within the next four months should the information not be provided.
In its statement, GCR clarified that a credit rating suspension does not imply that the entity is defaulting on its debt obligations or that its financial position has necessarily deteriorated. Instead, it simply reflects that it has failed to provide important information pertaining to its credit profile.
