GCR Ratings (“GCR”) has placed Union Bank of Nigeria Plc’s Series 2 national scale long-term issue rating of BBB+_(NG) on Rating Watch Evolving.

Rating Rationale

The Series 2 bonds (“the bonds”) were issued under Union Bank of Nigeria Plc’s (“the bank” or “the issuer”) N100bn Debt Issuance Programme on 7 September 2018.

The ratings of the bank have been placed on Rating Watch Evolving, due to the acquisition of majority shareholding by Titan Trust Bank Limited, which was concluded in June 2022. As such, GCR is placing the rating of the bonds on Rating Watch Evolving, in line with the rating action taken on the issuer.

We expect to resolve the Rating Watch when the issuer finalises the post-acquisition integration and presents the consolidated financial statements.

For more information on the ratings of the issuer read, ‘GCR places Union Bank of Nigeria Plc’s national scale ratings on Rating Watch Evolving following the acquisition by Titan Trust Bank Limited’.

Ratings History

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, the rated entities, 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 the Union Bank of Nigeria 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