June 30, 2021

By Moody’s Investors Service

Moody’s Investors Service (“Moody’s”) has completed a periodic review of the ratings of Zenith Bank Plc and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review discussion held on 14 June 2021 in which Moody’s reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody’s practice has been to issue a press release following each periodic review to announce its completion.

This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement.

Key rating considerations are summarized below.

Zenith Bank Plc’s (Zenith) B2 long-term deposit ratings reflect the bank’s b2 baseline credit assessment (BCA), which is positioned at the same level as the rating of the Government of Nigeria.

Zenith’s b2 BCA reflects the bank’s high capital buffers, predominantly deposit-funded balance sheet, solid liquidity and strong profitability underpinned by the bank’s robust franchise. These strengths are moderated by Nigeria’s challenging operating environment, as well as with the bank’s relatively high reliance on corporate deposits (which tend to be more confidence sensitive than retail deposits).