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Ecobank Nigeria Downgraded to CCC-, Outlook Negative
June 20, 2025
Ecobank Nigeria Ltd. long term rating has been downgraded to CCC- from CCC by S&P, while still maintaining a negative outlook. Although the bank announced four capital-boosting measures, its capital adequacy ratio (CAR) was at 7% in 4Q24, in breach of the regulatory minimum. So far, the bank has only received $50mn in prepayments of promissory notes from its parent ETI and foreign currency loans. To restore capital adequacy, S&P believes that Ecobank Nigeria should issue an additional $150mn in AT1 instruments. S&P also states that Ecobank’s buyback of $150mn bonds, half of its current outstanding senior unsecured Eurobonds, at a early tender premium of 1.25% is not generating any additional value. Also, Ecobank has been soliciting consent from its noteholders to remove the capital adequacy covenant on the remaining outstanding notes.
Ecobank Nigeria’s 7.125% 2026s are trading stable at 98.755, yielding 9.13%.
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