Moody’s Investors Service has revised the outlook on Ecobank Transnational Incorporated’s (ETI) long-term issuer and senior unsecured debt ratings to stable from negative, citing stronger financial performance and improved liquidity management across the group.
In its latest ratings update, Moody’s also affirmed 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. ETI, which operates in 38 countries, including 35 in Africa, reported total assets of $28.9 billion as of March 2025.
Moody’s explained that the outlook revision reflects ETI’s resilient earnings, higher dividend flows from subsidiaries, and a decline in double leverage, which has eased refinancing risks.
Recapitalisation plans for Ecobank Nigeria
The agency also noted that the ongoing recapitalisation of Ecobank Nigeria Limited is expected to be completed by the end of 2025 with minimal impact on ETI’s fundamentals.
“The stable outlook reflects our expectation that capital-boosting measures to strengthen Ecobank Nigeria’s total capital position will be finalised before the end of 2025,” Moody’s said.
In May 2025, ETI obtained shareholder approval to raise $250 million in Additional Tier 1 (AT1) capital, with the transaction launched on 9 July 2025. A portion of this funding will be downstreamed to Ecobank Nigeria in Q3 2025. Ecobank Nigeria also plans to raise $200 million in AT1 capital.
The rating note added that Ecobank Nigeria’s $150 million tender offer for part of its February 2026 $300 million notes, as well as the removal of the capital adequacy covenant, have reduced the risk of default events that could affect ETI.
Strengthening liquidity and funding
ETI’s profitability has improved, with a 22% increase in dividends upstreamed in 2024, coming from 22 subsidiaries compared to 14 in 2021. Its double leverage ratio fell to 168% in December 2024, from 173% the previous year.
Liquidity pressures have eased following the refinancing of short-term liabilities with longer-term debt, supported by $400 million in senior unsecured notes issued in October 2024 and a $125 million tap in May 2025, both maturing in October 2029.
Moody’s reaffirmed ETI’s ratings, citing its b2 BCA, b1 adjusted BCA, and moderate affiliate support. The agency also noted improvements in asset quality, further underpinning the stable outlook.
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