GCR upgrades Greenwich Merchant Bank’s credit rating to “BBB”

Greenwich Merchant Bank Limited’s credit rating has been upgraded from “BBB-” to “BBB” with a stable outlook by the Global Credit Rating (GCR).

Agusto & Co had earlier in the year assigned the rating “BBB” to the bank.

GCR said the improved rating reflected the bank’s strong capitalisation, robust liquidity, and sound risk position, adding that “the risk position is well contained as evidenced by the zero-performing loans, funding and liquidity are robust and considered appropriate for its current operational scale.”

According to GCR, the bank’s capital adequacy ratio is well above the regulatory minimum of 10 percent with the core capital ratio expected to be maintained above 35 percent over the next 12 to 18 months.

Bayo Rotimi, managing director of Greenwich Merchant Bank, described the current rating as yet another confirmation of the bank’s dedication to value creation for its clients and other stakeholders.

He said in a statement that the rating validated the traction gained by the bank in terms of deposit mobilisation, loan growth, and enhanced service delivery.

Greenwich Trust Limited, the precursor to Greenwich Merchant Bank, commenced operations in June 1994, obtained a merchant banking licence in September 2020, and subsequently commenced merchant banking operations in October 2020.

The bank currently has two wholly owned subsidiaries, Greenwich Asset Management Limited and Greenwich Securities Limited, according to the statement.