Moody's rates Stanbic Bank Uganda B1

Moody's Investors Service said it assigned B1/not-prime local-currency long-term and short-term deposit ratings and B3/not-prime foreign-currency long-term and short-term deposit ratings to Stanbic Bank Uganda Ltd.

The bank's B3 foreign-currency deposit rating is constrained by Uganda's foreign-currency deposit rating ceiling of B3, Moody's said.

The agency also said it assigned a counterparty risk assessment of Ba3(cr)/not-prime(cr) and a counterparty risk rating of Ba3/not-prime.

The outlook is stable.

The local-currency ratings are a notch above Uganda's sovereign issuer rating of B2, capturing both the standalone strength of the bank and an assessment of its ultimate parent, South Africa's Standard Bank Group Ltd. as a support provider, Moody's explained.

The bank has a large domestic franchise that supports an expectation of continued resilience in its earnings generating capacity and robust capital buffers, which together will continue to provide a thick cushion to withstand potential loan losses, the agency said.

These strengths are moderated by an expectation that the bank will increasingly rely on more confidence-sensitive non-deposit funding as it grows in size over the coming years, Moody's said.

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