Bank of Industry

By Cynthia Alo

Fitch Ratings has upgraded  Bank of Industry’s (BoI) National Long-Term Rating to ‘AAA(nga)’ from ‘AA+(nga);’ and affirmed the Nigeria-based bank’s Long-Term Issuer Default Rating (IDR) at ‘B’ with a Stable Outlook.


It said the upgrade of BoI’s rating reflects the linkage between the bank and the sovereign has strengthened, as evident in the significant size of the CBN guarantees provided for BOI’s recent external funding.

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The full list of rating actions shows that “BoI’s Long-Term IDR and SRF are equalised with the Long-Term IDR of the sovereign as we believe that the Nigerian authorities have a high propensity to support BoI.


Fitch said its assessment primarily reflects the following:
‘‘The bank’s important and clearly defined policy role in funding economic growth in Nigeria;


Its 99.9% state ownership, split between the Ministry of Finance (94.8%) and the Central Bank of Nigeria (CBN; 5.1%); and The entirety of the bank’s wholesale funding being either provided or guaranteed by the Nigerian state. However, Fitch also views the ability of the authorities to support BOI as limited by Nigeria’s ‘B’ Long-Term IDR.


BOI is Nigeria’s primary development bank, with the mandate of financing the country’s emerging industrial sector.’’

Fitch also said BOI maintains solid capitalisation and leverage metrics (end-1H21: equity-to-asset ratio of 19.4%), which is prudent for the bank’s exposure to the volatile operating environment.

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