Summary: United Bank for Africa Plc

Large customer franchise in Nigeria and good geographic footprint in the rest of Africa. Better-than-average asset-quality metrics compared with top-rated domestic peers. Moderately high single-name obligor concentration. High operating risk. Large foreign currency exposures. S&P Global Ratings' stable outlook on Nigeria-based United Bank for Africa Plc (UBA) reflects that on Nigeria (B/Stable/B) and our expectation that the group's financial profile will remain broadly stable in the next 12 months. We would lower the ratings on UBA if we lowered the rating on Nigeria or observed a higher-than-expected deterioration in the group's asset-quality indicators over the next 12 months. We would also lower the ratings on UBA in the unlikely scenario of a significant drop in capitalization, leading to a risk-adjusted

...Large foreign currency exposures. Outlook: Stable S&P Global Ratings' stable outlook on Nigeria-based United Bank for Africa Plc (UBA) reflects that on Nigeria (B/Stable/B) and our expectation that the group's financial profile will remain broadly stable in the next 12 months. We would lower the ratings on UBA if we lowered the rating on Nigeria or observed a higher-than-expected deterioration in the group's asset-quality indicators over the next 12 months. We would also lower the ratings on UBA in the unlikely scenario of a significant drop in capitalization, leading to a risk-adjusted capital (RAC) ratio (before adjustments for diversification) below 3%. An upgrade is unlikely in the next 12 months because it would hinge on an upgrade of the sovereign and a decline in the economic risks faced by the Nigerian banking sector....

Summary