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Fitch Ratings said today that it has assigned an expected long- and short-term credit rating of B(EXP) to Access Bank’s forthcoming $1 billion Global Medium-Term Note programme.

The ratings action comes a day after Access Bank launched an investor roadshow that will enable the bank’s management meet with prospective foreign investors in the United States and Europe to generate interest for its bond issuance. The initial amount to be raised in the first series has not been announced.

The ratings agency said the programme's ratings are in line with Access Bank's long- and short-term Issuer Default Ratings (IDRs) of 'B', respectively, which are driven by both potential support from the Nigerian government and the bank’s standalone creditworthiness as defined by a viability rating (VR) of ‘b.’

“In Fitch's view, the likelihood of default on senior unsecured notes under the programme reflects the likelihood of default of the bank,” the ratings agency said. “While Nigeria's willingness to support domestic banks remains high, its ability to do so is weaker, particularly in foreign currency, due to challenging economic conditions. The bank's VR reflects an improving company profile, low impaired loans and healthy profitability as well as a tough operating environment in Nigeria.”

Herbert Wigwe, Access Bank’s Group Managing Director/CEO, told Bloomberg that proceeds from the bond issuance will be used to fund working capital and lending to investment-grade names, including companies seeking to expand their exports.

In April this year, Access Bank obtained shareholders approval to raise N100 billion from a public offering or private placement. The bank currently has two outstanding Eurobonds – a $350 million bond due in 2017 and a $400 million bond due in 2021.