Rating Release

Agusto & Co. affirms the ‘Aaa’ rating assigned to Bank of Industry Limited, with a stable outlook

 The rating expires on 30 Sept 2024.

 Agusto & Co. hereby affirms the “Aaa” rating assigned to Bank of Industry Limited (‘BOI’ or ‘the Bank’) reflecting the strong support of the significant shareholders (the Central Bank of Nigeria (CBN) and the Ministry of Finance Incorporated (MoFI)). The CBN support is reflected in the provision of derivative instruments used to mitigate currency risk emanating from BOI’s foreign currency borrowings and bolstered the shareholders’ funds with the capitalisation of some intervention funds extended to the Bank subsequent to the year-end. Over the years, MoFI has facilitated the sovereign guarantees used to secure the Bank’s foreign currency borrowings while also providing additional capital when needed. The rating also took cognisance of BOI’s strong capitalisation, expanding funding base and good liquidity profile. However, constraining these positive factors is the Bank’s exposure to political risks as reflected in abrupt changes in the Board and the senior management team over the past years. The prevailing macroeconomic headwinds also continue to constrain the rating given the high vulnerability of the Bank’s obligors. We have also attached a ‘2’ ESG score which connotes that environmental, social and governance issues have minimal contribution to BOI’s credit risk.