Access Bank controls 17% of Nigerian banking assets in 2023, according to the latest ratings note by Fitch.
Fitch affirmed the bank’s National Long-Term Rating at ‘A+(nga)’ with a stable outlook. It said Access Bank’s credit ratings are driven by its standalone creditworthiness, as expressed by its viability rating (VR).
Fitch Ratings said it has affirmed Access Bank Plc’s Long-Term Issuer Default Rating (IDR) at ‘B-‘ with a positive outlook.
The Nigerian lender’s viability reflects the bank’s high sovereign exposure relative to capital and the concentration of its operations in Nigeria, according to Fitch.
It said Access Bank’s National Long-Term Rating balances its leading franchise against weaker core capitalisation and profitability than higher-rated peers.
Fitch said it expects acquisitions to continue, strengthening Access Bank’s franchise and geographical diversification. The rating note said Access Bank has a record of integrating domestic acquisitions, but the large number of cross-border acquisitions creates execution risks and may pressure financial metrics.
Access Bank is Nigeria’s largest banking group, accounting for 17% of banking system assets at the end of 2023, Fitch Ratings said. It noted that Access Bank has acquired several small banks in other Sub-Saharan African countries in recent years, in line with its African expansion strategy.
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