Access Bank debt obligations remain manageable as Fitch affirms the lender’s liquidity strength and stable outlook

Access Bank possesses sufficient foreign currency liquidity to comfortably meet its upcoming $1 billion external debt repayments due later this year, according to the latest assessment by Fitch Ratings.

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The global rating agency affirmed Access Bank’s Long-Term Issuer Default Rating at ‘B’ with a Stable Outlook, citing the lender’s resilient liquidity position despite ongoing macroeconomic pressures and tight domestic financial conditions.

Access Bank faces two major hard-currency obligations in the third quarter of 2026, including a $500 million Additional Tier 1 Eurobond callable in October and another $500 million senior unsecured Eurobond maturing in September.

Fitch said the bank’s liquidity profile remains strong enough to absorb the repayments without creating significant pressure on its balance sheet or triggering funding instability.

“Fitch believes that the bank’s foreign currency liquidity is sufficient to meet the upcoming repayments,” a senior credit analyst at the agency stated.

The analyst attributed part of the bank’s resilience to its expanding international footprint and diversified operations across multiple markets.

According to Fitch, the acquisition and consolidation of Mauritius-based AfrAsia Bank Limited in 2025 strengthened Access Bank’s operating environment and added substantial investment-grade assets to its balance sheet.

“The acquisition and consolidation of AfrAsia Bank Limited in 2025 have improved our assessment of Access Bank’s operating environment,” the analyst added.

The Access Bank debt obligations have attracted investor attention amid broader concerns about foreign currency liquidity and refinancing risks facing Nigerian lenders operating in volatile economic conditions.

Despite the positive liquidity assessment, Fitch noted that the bank’s standalone Capital Adequacy Ratio stood at 17.4 per cent in the first quarter of 2026, only slightly above the 15 per cent regulatory minimum requirement.

Analysts warned that the planned redemption of the $500 million debt instruments could temporarily weaken core capital ratios because the notes are still accounted for using pre-devaluation exchange rates.

“A redemption will reduce core capital because these notes are currently accounted for at a pre-devaluation exchange rate,” an investment banking strategist said.

However, the strategist noted that Access Bank has already begun implementing measures to strengthen its capital base ahead of the repayments.

According to the assessment, the lender has raised Tier Two capital and is pursuing additional internal capital generation initiatives, including plans to sell minority stakes in some of its foreign subsidiaries.

Fitch also reported that the bank’s asset quality remained stable, with its impaired loans ratio holding at three per cent at the end of 2025.

The agency added that Access Bank’s exposure to the oil and gas sector represented nine per cent of gross loans, a level it described as moderate and significantly below the average recorded among many domestic competitors.

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The latest rating affirmation is expected to reassure investors monitoring the financial strength of Nigerian banks amid evolving economic and foreign exchange conditions.