GCR Ratings (“GCR”) has placed Union Bank of Nigeria Plc’s national scale long-term and short-term issuer credit ratings and the national scale long term issue credit rating of the N6.3bn Series 2 Senior Unsecured Bonds on Rating Watch Evolving.

Rating Rationale

The ratings of Union Bank of Nigeria Plc (“UBN” or “the bank”) and its N6.3bn Series 2 Senior Unsecured Bonds have been placed on Rating Watch Evolving, due to the acquisition of majority shareholding by Titan Trust Bank Limited, concluded in June 2022.

We anticipate resolving the Ratings Watch within 3 months once the consolidated financial statements are presented.

The ratings of UBN could improve if we believe the creditworthiness of the consolidated group uplifts that of the bank, particularly regarding improved competitive position and capitalisation. Conversely, if the consolidated group looks weaker or if the new ultimate parent is assessed to have a weaker credit profile than the banking sub-group, we could lower the ratings.

Ratings History

Union Bank of Nigeria Plc

Union Bank of Nigeria Plc – Series 2 (N6.3bn) Senior Unsecured Bonds

Salient Points of Accorded Rating

GCR affirms that a.) no part of the rating process was influenced by any other business activities of the credit rating agency; b.) the ratings were based solely on the merits of the rated entity, security or financial instrument being rated; and c.) such ratings were an independent evaluation of the risks and merits of the rated entity, security or financial instrument.

The credit ratings have been disclosed to Union Bank of Nigeria Plc. The ratings above were solicited by, or on behalf of, Union Bank of Nigeria Plc, and therefore, GCR has been compensated for the provision of the ratings.

Union Bank of Nigeria Plc participated in the rating process via face-to-face management meetings, as well as other written correspondence. Furthermore, the quality of information received was considered adequate and has been independently verified where possible. The information received from Union Bank of Nigeria Plc and other reliable third parties to accord the credit ratings included:

• The audited financial results to 31 December 2021
• Four years of comparative audited numbers
• Other related documents