{"id":1229765,"date":"2022-10-20T13:23:14","date_gmt":"2022-10-20T13:23:14","guid":{"rendered":"https:\/\/www.ghanamma.com\/2022\/10\/20\/fitch-affirms-gt-bank-ghana-and-uba-ghanas-credit-ratings-at-b-with-stable-outlook\/"},"modified":"2022-10-20T13:23:14","modified_gmt":"2022-10-20T13:23:14","slug":"fitch-affirms-gt-bank-ghana-and-uba-ghanas-credit-ratings-at-b-with-stable-outlook","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2022\/10\/20\/fitch-affirms-gt-bank-ghana-and-uba-ghanas-credit-ratings-at-b-with-stable-outlook\/","title":{"rendered":"Fitch affirms GT Bank Ghana and UBA Ghana\u2019s credit ratings at ‘B-‘with stable outlook"},"content":{"rendered":"

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Rating agency, Fitch Ratings, has affirmed Guaranty Trust Bank and UBA Ghana\u2019s credit ratings at \u2018B-\u2018 with a Stable Outlook.<\/p>\n

Fitch also affirmed their Shareholder Support Ratings at \u2018b-\u2018 and Viability Ratings (VR) at \u2018ccc\u2019. \u00a0<\/p>\n

This is coming after it downgraded the two banks to junk status in August. There is more in this report.<\/p>\n

The rating actions follow the downgrade of Ghana\u2019s credit rating to junk status on September 23.<\/p>\n

Fitch said the affirmation of Viability Ratings of GT Bank Ghana and UBA Ghana at \u2018ccc\u2019 reflects its view that failure is a real possibility in the context of a likely restructuring of Ghana\u2019s local- and foreign-currency debt, but it\u2019s not a probable outcome as potential losses are expected to be tolerable due to the banks\u2019 large capital buffers.\u00a0<\/p>\n

\u201cThe affirmation of the VRs at \u2018ccc\u2019 reflects our view that, as per Fitch\u2019s definition, failure is a real possibility in the context of a likely restructuring of Ghana\u2019s local- and foreign-currency debt but not a probable outcome as potential losses are expected to be tolerable due to the banks\u2019 large capital buffers\u201d.<\/p>\n

\u201cA restructuring involving material losses being imposed on sovereign creditors would have a significant effect on the banks\u2019 solvency given their large holdings of sovereign fixed-income securities relative to their common equity Tier 1 (CET1) capital (GTB Ghana: 189%; UBA Ghana: 325% at end-1H22)\u201d, it added.<\/p>\n

However, It expects that losses imposed on creditors as part of a restructuring of sovereign debt would not be of a magnitude, so as to undermine the solvency of the banking system.<\/p>\n

GT Bank Ghana and UBA Ghana have stronger capitalisation than the aggregated banking system and therefore Fitch\u2019s base case is that losses will be tolerable.<\/p>\n

However, the scale of such losses is uncertain and therefore failure remains a real possibility.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Rating agency, Fitch Ratings, has affirmed Guaranty Trust Bank and UBA Ghana\u2019s credit ratings at \u2018B-\u2018 with a Stable Outlook. Fitch also affirmed their Shareholder Support Ratings at \u2018b-\u2018 and Viability Ratings (VR) at \u2018ccc\u2019. \u00a0 This is coming after it downgraded the two banks to junk status in August. There is more in this […]<\/p>\n","protected":false},"author":1,"featured_media":1229770,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[8804,557,27741,1560,2145,85,250,4338,4368,1554,5318],"class_list":["post-1229765","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-affirms","tag-bank","tag-bwith","tag-credit","tag-fitch","tag-ghana","tag-ghanas","tag-outlook","tag-ratings","tag-stable","tag-uba"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1229765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=1229765"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1229765\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1229765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1229765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1229765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}