Global credit rating agency Moody’s Investors Service has affirmed the ratings of Ecobank Transnational Incorporated (ETI), the parent company of Ecobank Group, and changed its outlook to stable from negative, citing improved financial performance and stronger capital management.
In a statement released by Moody’s, the rating firm 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.
Moody’s explained that the change in outlook from negative to stable reflects the group’s resilient financial performance, higher dividend inflows from subsidiaries, and progress on key capital initiatives, particularly in Nigeria.
Ecobank Group operates across 38 countries—including 35 African nations—with total assets of $28.9 billion as of March 2025, according to Moody’s report.
The rating agency noted that the Group has benefited from stronger upstreaming of dividends from its subsidiaries. Dividends paid to ETI grew by 22% in 2024, sourced from 22 subsidiaries, up from 14 in 2021. This has helped reduce double leverage, a key risk indicator for holding companies that borrow to fund investments in subsidiaries.
As a result, ETI’s double leverage ratio eased from 173% in 2023 to 168% as of December 2024, suggesting lower liquidity pressure on the holding company.
Moody’s analysts said they expect the recapitalization of Ecobank Nigeria Limited to be completed by the end of 2025 without causing significant disruption to the group’s financial health.
“The stable outlook also captures our expectation that a series of capital-boosting initiatives and actions to cure Ecobank Nigeria’s total capital position will be completed before the end of 2025,” the rating note stated.
To support this plan, Ecobank Nigeria is raising $200 million in Additional Tier 1 (AT1) capital. Part of this amount will come from a $250 million AT1 capital raise by ETI, which was approved by shareholders in May 2025 and launched on July 9, 2025. Funds are expected to be transferred to Ecobank Nigeria during the third quarter of 2025.
Moody’s also noted a recent development that helped reduce risk at the Nigerian subsidiary level. Ecobank Nigeria made a successful offer to buy back $150 million of its $300 million notes due February 2026 and got bondholders to remove a capital adequacy covenant, reducing the risk of default that could affect the broader group.
The group’s liquidity position has also improved, with Moody’s citing a $400 million senior unsecured notes issuance in October 2024 and an additional $125 million tap in May 2025. Both are due in October 2029, providing longer-term stability.
“Liquidity risks are being moderated by the group’s gradually improving profitability during 2024 and Q1-2025,” the report added.
The affirmation of ETI’s B3 long-term issuer rating also reflects Moody’s confidence in the group’s capital and asset quality. The group’s b2 notional BCA and b1 adjusted BCA include a one-notch uplift for potential support from its major institutional shareholders. Moody’s assesses the probability of such support as “moderate.”
Meanwhile, Moody’s said asset quality across the group has improved in recent years, an important factor in its stable rating outlook.
With these updates, the Ecobank Group remains on a solid path to consolidate its pan-African banking position. The rating confirmation and improved outlook come at a time when ETI is seeking to shore up confidence among investors and regulators in its key markets.
