Agusto &Co. Assigns A ‘Bbb-’Rating to Jaiz Bank Plc, With A Stable Outlook
Agusto & Co. hereby assigns a ‘Bbb-’rating to JaizBank Plc ,reflecting the Bank’s status as Nigeria’s largest non-interest bank with a growing footprint in its niche market.The rating also considers Jaiz Bank’s good liquidity profile and adequate capitalisation.
However, offsetting these positives are the Bank’s limited credit and market risk controls,high impaired financing ratio and high-cost profile. The rating also takes into cognizance the impact of the COVID-19 pandemic on individuals and businesses as well as the limited availability of Shari’ah-compliant instruments which impedes effective liquidity management.
We have attached a stable outlook to the rating of Jaiz Plc. The outlook is hinged on our expectations that asset quality will deteriorate but will be slightly moderated by the CBN’s forbearance whilecapitalisationwillimproveintheshort-termonthebackofthescheduled capital raisingexercise. We also expect the Bank to sustain its good liquidity profile and the growing footprint in its target market.