Fitch Ratings has revised the outlooks for FBN Holdings Plc and its subsidiary, First Bank of Nigeria Limited, to positive from stable.
The rating agency affirmed the Long-Term Issuer Default Ratings at ‘B-‘.
The upgrade reflects Fitch’s view that Nigeria’s improving economic outlook will positively impact the banks’ standalone creditworthiness.
However, the banks remain constrained by high sovereign exposure and concentration in the Nigerian market.
FBN is Nigeria’s third-largest bank with a strong franchise but faces challenges such as high sovereign exposure, concentrated loan portfolio, and rising non-performing loans.
Despite these issues, the bank has shown resilience and is making progress in addressing asset quality concerns.
Fitch expects the non-performing loan ratio to increase moderately in the near term due to the challenging operating environment.
The rating agency highlighted the importance of continued progress in addressing the bank’s challenges to maintain financial stability.
