By Modupe Gbadeyanka
The counterparty credit ratings on Skye Bank Plc by S&P Global Ratings has been suspended due to lack of sufficient, reliable and timely information.
However, S&P Global Ratings explained that the suspension is for up to 90 days, pending the receipt of further information.
S&P Global Ratings further said it expects the issues are resolved “within the next 90 days, subject to receiving the necessary information from the bank,” warning that “If the information is not received within that timeframe, we will withdraw our ratings.”
In a press statement issued on Monday by the firm, it noted that Skye Bank, at mid-year 2016, breached some regulatory ratios, including the minimum capital adequacy and liquidity ratios, which led the Central Bank of Nigeria to intervene, suspending the bank’s board of directors and changing its top management on July 4, 2016.
Since then, the quality, quantity, and timeliness of information that we have received from the bank has fallen short of our requirements, resulting in our decision to suspend the ratings, it added.
At the time of the suspension, the global and local scale ratings on Skye Bank were ‘CCC-/C’ and ‘ngCCC-/ngC’ and these ratings were on CreditWatch negative, adding that also at the period, “We understand from our interaction with the bank’s management that Skye Bank has been making timely payments on funding facilities and deposits both in US Dollars and Nigerian Naira. We also understand that the bank has restructured some off-balance-sheet trade-related facilities under mutually agreed conditions with creditors.”
S&P Global Ratings provides high-quality market intelligence in the form of credit ratings, research, and thought leadership. It boasts of 26 offices around the world and a history dating back to over 150 years.
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