Rating Release

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

The rating expires on 30 September 2025.

Agusto & Co. affirms the “Aaa” rating assigned to the 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)). In addition to equity investment, the CBN provides derivative instruments used to mitigate currency risk emanating from BOI’s foreign currency borrowings. During the year under review, the Bank’s obligation to the CBN under the intervention funds was converted to equity, reflecting a strong shareholder commitment. Over the years, MoFI has facilitated the sovereign guarantees which secured the Bank’s foreign currency borrowings while also providing additional capital. The rating also took cognizance of BOI’s good capitalisation, good profitability, diversifying funding base and good liquidity profile. However, constraining these positive factors is the exposure to political risk as reflected in abrupt changes in the Board and the senior management team over the past year. The prevailing macroeconomic headwinds also continue to constrain the rating given the susceptibility of the Bank’s obligors. We have attached a ‘2’ ESG score to the rating which connotes that environmental, social and governance issues have minimal contribution to BOI’s credit risk.