GCR Upgrades FCMB Group’s Rating to A- Amid Stronger Capital

Global Credit Rating (GCR) has upgraded FCMB Group Plc's national scale long-term issuer rating to A- from BBB- due to the group's stronger capital position and improved earnings resilience. The agency also affirmed the group's short-term issuer rating at A2 and maintained a stable outlook.

The upgrade reflects the enhanced financial strength of First City Monument Bank Limited, the group's core banking subsidiary, following a successful capital injection that supports sustainable internal earnings generation. GCR noted that the upgrade indicates improved capital adequacy, good internal earnings generation, and a strong competitive position, alongside adequate funding liquidity against the evolving risk profile of the bank.

However, GCR stated that FCMB Group's issuer rating remains one notch below that of its banking subsidiary due to the structural subordination associated with its non-operating holding company structure, which relies significantly on dividend flows from its subsidiaries, particularly during periods of regulatory intervention or financial stress.