Agusto & Co. affirms the ‘Aaa’ rating assigned to Bank of Industry Limited, with a stable outlook.
The rating expires on 30 September 2023.
Agusto & Co. affirms the “Aaa” rating assigned to Bank of Industry Limited (‘BOI’ or ‘the Bank’) and an ESG score of ‘2’ which connotes that environmental, social and governance issues have minimal contribution to the assigned credit rating. The ‘Aaa’ rating reflects support from the key shareholders; the Ministry of Finance Incorporated (the investment vehicle of the Ministry of Finance) and the Central Bank of Nigeria (CBN). These shareholders have reinforced the Bank’s ability to refinance over the years by providing equity and financing support through government intervention programs.
The shareholders also facilitate sovereign guarantees and provide currency hedges for BOI’s foreign currency borrowings. The rating assigned further takes into cognisance the Bank’s good capital base, good funding and liquidity profile and experienced management team. However, constraining these positive factors are Nigeria’s weak macroeconomic environment and the high vulnerability of micro, small and medium enterprises (MSMEs) to headwinds.