Fitch Rates First Bank of Nigeria's Tier 2 Note Issue

(The following statement was released by the rating agency) LONDON, July 23 (Fitch) 

Fitch Ratings has assigned First Bank of Nigeria Ltd's (FBN; B+/Stable) planned subordinated debt (Tier 2 notes) a 'B-(EXP)'expected rating. 
The subordinated notes are issued by FBN Finance Company B.V (FBNF) as a special purpose vehicle. 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. 

KEY RATING DRIVERS 
The notes are subordinated but have no coupon flexibility, principle loss absorption of equity conversion features. They qualify as Tier 2 regulatory capital under current Central Bank of Nigeria guidelines. Fitch has rated the notes one notch below FBN's Viability Rating of 'b' to reflect below average loss severity for subordinated relative to senior debt. No additional notches for non-performance risk have been applied. 



RATING SENSITIVITIES 
The notes' rating is sensitive to a change in FBN's VR. In addition, the notching of the rating against the bank's VR could potentially also widen if Fitch believed that the recoveries available to the subordinated note holders in the event of a default of the bank would be lower than currently assumed. 

Contact: 
Primary Analyst 
Mahin Dissanayake 
Director 
+44 20 3530 1618 
Fitch Ratings Limited 
30 North Colonnade London E14 G5N 

Secondary Analyst 
Bjorn Norrman 
Director 
+44 20 3530 1330 
Committee Chairperson 
Gordon Scott 
Managing Director 
+44 20 3530 1075 
Media Relations: 
Hannah Huntly, London, 
Tel: +44 20 3530 1153, 
Email: hannah.huntly@fitchratings.com. 

Additional information is available on www.fitchratings.com Applicable criteria, 'Global Financial Institution Rating Criteria' dated 15 August 2012 and 'Assessing and RatingBanks Subordinated and Hybrid Securities' dated 5 December 2012, are available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here Assessing and Rating Bank Subordinated and Hybrid Securities here Additional Disclosure Solicitation Status here 

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.