BOI gets Moody’s Aa1 rating

BOI gets Moody’s Aa1 rating

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A global credit rating provider, Moody’s Investors Service has assigned Aa1.ng/NG-1 national scale local and foreign currency issuer ratings to the Bank of Industry.
The Aa1.ng rating is the second highest of three national scale ratings categories.
According to the rating firm, BOI’s national scale ratings capture the bank’s robust capital buffers, with an equity to assets ratio of 30 percent as of December 2015, stable liability structure made up of long-term funding at concessional rates, and tangible improvements to governance and risk positioning in recent years.
An elated BOI’s Acting Managing Director, Mr. Waheed Olagunju, said the feat was a confirmation of the bank’s similar ratings of AA+ by Fitch Ratings and A+ by Agusto & Co.
He attributed the institution’s consistent high ratings to strong commitment to professionalism and strict adherence to global best practices by the bank’s competent management and staff.
“The bank’s remarkable performance in first, second and third quarters of 2016 were indications that BOI was on course to sustaining its remarkable operations and ending the outgoing year on a strong note despite the economic head winds,” he explained.
He added that the bank’s strengths were balanced against its projection that asset quality will be increasingly pressured given the loan growth strategy that the bank is pursuing, particularly in the Micro, Small and Medium-sized Enterprises segment, which may expose the bank to riskier assets.
In 2015, Moody assigned Ba3 to BOI, a development that was in consonance with Nigeria’s sovereign rating.
These latest ratings are underpinned by a standalone credit assessment of b2 and one notch of government support uplift, which results in a global scale long-term issuer rating of B1.

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