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Fitch upgrades Bank of Industry’s national rating

Fitch Ratings has upgraded Bank of Industry’s national long-term rating to ‘AAA(nga)’ from ‘AA+(nga)’ and affirmed the bank’s Long-Term Issuer Default Rating at ‘B’ with a stable outlook.

It said in a statement that the upgrade of BoI’s long-term national rating of ‘AAA(nga)’ reflected 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.

Fitch said, “BOI’s long-term IDR and Support Rating Floor are equalised with the long-term IDR of the sovereign as we believe that the Nigerian authorities have a high propensity to support BOI.”

The agency added that its assessment primarily reflected the bank’s important and clearly defined policy role in funding economic growth in Nigeria; its 99.9 per cent state ownership, split between the Ministry of Finance (94.8 per cent) and the CBN (5.1 per cent); 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.

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