S&P rates GTB notes B-

Standard & Poor's said it assigned a B+ long-term rating and B short-term rating to the updated $2 billion global medium-term note program of GTB Finance BV.

Debt issued under the program will be unconditionally and irrevocably guaranteed by Guaranty Trust Bank plc.

The agency also said it assigned a B- long-term debt rating to dated subordinated notes issued under the program.

The ratings are in line with the counterparty credit ratings on the bank, which are constrained by the high economic and industry risks associated with operating in the Federal Republic of Nigeria, the bank's restricted geographic and lending diversification, high exposure to credit risks, accentuated by concentrations in the loan portfolio and strained asset quality, S&P said.

The ratings are supported by its good franchise in top-tier corporate banking in Nigeria, good financial performance compared with the sector, satisfactory capitalization and a satisfactory funding and liquidity profile, the agency said.

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