According to the UK-based firm, GTB Ghana's Long-Term IDR is driven by potential support from its Nigeria-based parent Guaranty Trust Bank Limited (GTB; B-/Stable), as expressed by its Shareholder Support Rating (SSR) of 'b-'.
Fitch Ratings has downgraded Ecobank Ghana Limited’s, Guaranty Trust Bank (Ghana) Limited’s (GTB Ghana) and United Bank for Africa (Ghana) Limited’s (UBA Ghana) Viability Ratings (VRs) to ‘ccc’ from ‘b-‘.
KEY RATING DRIVERS
IDR AND VIABILITY RATING
The Long and Short-Term IDRs of GTB Ghana are driven by its standalone creditworthiness, as expressed by its Viability Rating (VR) of ‘b’. The ratings consider the concentration of its operations in the challenging Ghanaian operating environment, its small market shares, high credit concentrations and ambitious growth strategy. These considerations are balanced against the bank’s healthy asset quality and strong profitability, capitalisation and liquidity coverage.
GTB Ghana has small market shares of assets and customer deposits (both 3% at end-2020) but its franchise benefits from being a subsidiary of Guaranty Trust Bank PLC (GTB PLC), Nigeria’s fifth-largest banking group. Market shares are expected to increase moderately over the next three years as GTB Ghana grows faster than the sector average with the objective of becoming a systemically important bank. However, this target is challenging due to the bank’s current marke