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Moody's Upgrades Ecobank Transnational Incorporated's (ETI) Outlook to 'Stable' Amid Strong Financial Performance

Strategic Insights

— 2 min read

Ecobank Transnational Incorporated's (ETI) outlook has been upgraded from 'negative' to 'stable' by Moody's Ratings, affirming the group's B3 long- and short-term issuer ratings, B3 senior unsecured debt rating, B2 notional Baseline Credit Assessment (BCA), and b1 Adjusted BCA. This revision reflects ETI's resilient financial performance, improved liquidity profile, and progress toward recapitalising Ecobank Nigeria, which currently accounts for about 11.7 percent of ETI's total group assets. Moody's highlighted that ETI has demonstrated resilient financial performance over the past year, supporting the change in outlook to stable, with a 22 percent rise in dividends received from its subsidiaries in 2024 and Q1 2025.

Key Takeaways:

  • Ecobank Transnational Incorporated's (ETI) outlook has been upgraded from 'negative' to 'stable' by Moody's Ratings.
  • ETI's resilient financial performance, improved liquidity profile, and progress toward recapitalising Ecobank Nigeria led to the upgrade.
  • Ecobank Nigeria accounts for about 11.7 percent of ETI's total group assets.
  • ETI has demonstrated resilient financial performance over the past year, with a 22 percent rise in dividends received from its subsidiaries in 2024 and Q1 2025.
  • The group's profitability continued to improve through 2024 and Q1 2025, leading to a 22 percent rise in dividends received from its subsidiaries.
  • ETI's double leverage ratio reduced to 168 percent in December 2024, from 173 percent the previous year.
  • Moody's pointed to a significant reduction in liquidity risks at the holding company level, following the successful refinancing of short-term obligations.
  • ETI accessed capital markets in October 2024 and May 2025, raising $400 million and $125 million, respectively, through senior unsecured note issuances maturing in 2029.
  • Ecobank Nigeria's capital adequacy issues will be addressed through a series of capital-raising initiatives before the end of 2025.
  • The stable outlook incorporates Moody's expectation that Ecobank Nigeria's capital adequacy issues will be resolved.
  • Ecobank Nigeria is pursuing a separate $200 million AT1 issuance, aiming to address its capital adequacy issues.

Statistics:

  • ETI's double leverage ratio reduced to 168 percent in December 2024, from 173 percent the previous year.
  • The group's profitability continued to improve through 2024 and Q1 2025, with a 22 percent rise in dividends received from its subsidiaries.
  • ETI accessed capital markets in October 2024 and May 2025, raising $400 million and $125 million, respectively, through senior unsecured note issuances maturing in 2029.
  • Ecobank Nigeria's capital adequacy issues will be addressed through a series of capital-raising initiatives before the end of 2025.
  • The stable outlook incorporates Moody's expectation that Ecobank Nigeria's capital adequacy issues will be resolved.
  • Ecobank Nigeria is pursuing a separate $200 million AT1 issuance, aiming to address its capital adequacy issues.

Sources:

  • Moody's Ratings: Moody's upgrades Ecobank Transnational Incorporated's (ETI) outlook to 'stable' (n/a)
  • n/a

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