Fitch Ratings has downgraded Ecobank Nigeria’s viability rating from ‘ccc’ to ‘f,’ citing a “material capital shortfall” and a breach of the 10% capital adequacy ratio (CAR) since 2024.
Fitch Ratings has downgraded Ecobank Nigeria’s viability rating from ‘ccc’ to ‘f,’ citing a “material capital shortfall” and a breach of the 10% capital adequacy ratio (CAR) since 2024. “Fitch believes ENG will need to strengthen capitalisation through extraordinary capital support or will need to continue operating with regulatory forbearance,” the agency stated. Despite this, Fitch affirmed the bank’s long-term issuer default rating (IDR) at ‘CCC,’ indicating continued substantial credit risk.
S&P Global Ratings had previously lowered Ecobank’s IDR to ‘CCC-’ in June, expecting capital reinforcement through a $150 million Tier 1 instrument. “If the bank receives the capital injection from its parent within the next couple of months, we anticipate that it will no longer be in breach of the minimum CAR,” S&P said.
Fitch also downgraded the shareholder support rating to ‘no support’ but noted sufficient liquidity remains. “Fitch believes the bank has sufficient liquidity… including the remaining USD150 million Eurobond payment due in February 2026.”