Fitch Ratings has placed Nigeria-based Coronation Merchant Bank Limited's (CMB) Long-Term Issuer Default Rating (IDR) at 'B-' and Viability Rating (VR) at 'b-' on Rating Watch Negative (RWN). Fitch has also downgraded CMB's National Long-Term Rating to 'BBB-(nga)' from 'BBB+(nga)' and placed it on RWN. The RWN reflects increased pressure on the bank's capital ratios |
Financial authorities aim to require banks to set aside an additional capital reserve called a “countercyclical capital buffer” (CCyB), on top of lenders mandatory capital reserve buffers required for their banking business. This is to make the banking sector more accountable and adaptable to potential external liquidity threats.