Diamond Bank's senior debt gets Fitch's 'B(EXP)' rating

Fitch Ratings has assigned Diamond Bank Plc's United States dollar senior debt notes an expected Long-term rating of 'B(EXP)' with a recovery rating of 'RR4(EXP)'.

The global agency explained that its recovery rating for the bank was in line with its soft cap for Nigeria.

The structure of the notes is not yet finalised, and the final rating is contingent upon the receipt of final documents conforming to information already received.

It stated that the rating is aligned with Diamond's Long-term Issuer Default Rating (IDR) of 'B/Stable', which it had affirmed on March 4, this year.

The rating is sensitive to a change in Diamond's Long-term IDR. The recovery rating is also sensitive to a change in Fitch's assumption regarding recoveries in the event of a default, it added.

Shareholders of Diamond Bank Plc had last month endorsed the plan by the bank to raise $500 million additional capital in its quest to raise its tier 2 capital by $750 million. The fund would be raised through a rights issue in the ratio, terms, conditions and dates to be determined by the directors, subject to regulatory approvals.

The bank had explained that it had already raised about $250 million out of $750 million.

The bank's Group Managing Director/Chief Executive Officer, Dr. Alex Otti had said the fund would enhance Diamond Bank's operations as well as its expansion drive.