Moody’s Investors Service has affirmed the ratings of Ecobank Transnational Incorporated (ETI), upgrading the outlook on its long-term issuer and senior unsecured debt ratings from negative to stable, citing improved financial performance and reduced refinancing risks.
The agency confirmed ETI’s B3/Not Prime long- and short-term issuer ratings, B3 senior unsecured debt rating, b2 notional Baseline Credit Assessment (BCA), and b1 Adjusted BCA.
The change in outlook, Moody’s explained, reflects ETI’s strengthened financial fundamentals and its resilient performance across its widespread operations in 38 countries, 35 of them in Africa, with total assets amounting to $28.9 billion as of March 2025.
A key factor behind the revised outlook is the increase in dividend inflows from ETI’s subsidiaries, which helped reduce double leverage and lower refinancing risk. In 2024, ETI received dividends from 22 subsidiaries, up from just 14 in 2021, marking a 22% rise in upstreamed income.
Moody’s also noted that ETI’s double leverage ratio, an indicator of liquidity risk resulting from borrowing to fund equity investments in subsidiaries, declined to 168% in December 2024, from 173% the previous year.
This, coupled with a successful refinancing of short-term liabilities with longer-term funding, contributed to the improved liquidity profile at the holding company level.
ETI’s enhanced access to capital markets further supports Moody’s confidence. The group issued $400 million in senior unsecured notes in October 2024 and followed up with a $125 million tap issuance in May 2025, both maturing in October 2029.
The outlook also incorporates Moody’s expectation that Ecobank Nigeria’s recapitalisation plan will be finalised by the end of 2025 with minimal impact on group financials. In line with this, ETI secured shareholder approval in May 2025 to raise $250 million in Additional Tier 1 (AT1) capital, part of which will be directed to Ecobank Nigeria during Q3 2025.
Moody’s noted Ecobank Nigeria’s progress in reducing risks, particularly through its recent $150 million bond tender offer, which aimed to amend terms of its $300 million February 2026 notes by removing the capital adequacy ratio covenant, a move that mitigates the risk of default in Nigeria that could trigger cross-default clauses at the ETI level.
Finally, Moody’s reaffirmed ETI’s B3 long-term issuer ratings based on its b2 BCA and b1 adjusted BCA, which includes a one-notch uplift due to the moderate likelihood of support from key institutional shareholders. The agency also acknowledged improvements in asset quality across the group in recent years.
Overall, the revised stable outlook reflects ETI’s ongoing capital-raising efforts, improving earnings profile, and enhanced risk management, positioning the banking group on a firmer financial footing.