Moody's Announces Completion of a Periodic Review of Ratings of Bank of Industry

Tuesday, June 30, 2020 01:42 PM / by Moody's Investors Service/ Header Image Credit:  Wikipedia

Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Bank of Industry and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. The review did not involve a rating committee. Since 1 January 2019, Moody's practice has been to issue a press release following each periodic review to announce its completion.

This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed in a portfolio review and hence are not impacted by this announcement.

Key rating considerations are summarized below

Bank of Industry's B2 corporate family rating (CFR) is driven by the entity's b2 Baseline Credit Assessment (BCA). Its B2 issuer rating is based on the B2 CFR and the application of our Loss Given Default (LGD) analysis for speculative-grade companies.

Bank of Industry's B2 CFR is effectively constrained at the level of Nigeria's sovereign rating, primarily because of the high interlinks between its credit profile and that of the government. The CFR also reflect its robust capital buffers and moderate level of nonperforming loans (NPLs), but also the tough operating conditions that will pressure its financial performance. Its funding base benefits from long-term market funding and funding from the Central Bank of Nigeria, but remains narrow and vulnerable to investors' risk appetite, while there are also significant funding maturities by June 2021.

Related News - Rating Agencies on Nigeria

1. Nigeria's Oil Output Cap to Weigh on Growth, External Finances
2. Moody's Affirms Nigeria's B2 Ratings, Maintains Negative Outlook
3. Fitch Downgrades Nigeria to 'B'; Outlook Negative
4. Nigeria Long-Term Rating Lowered To ''B-'' On Weakening External Position
5. Nigeria's Outlook Revised To Negative On Falling Foreign Exchange Reserves
6. Moody's Announces Completion of a Periodic Review of Ratings of Nigeria
7. Fitch Revises Outlook on Nigeria to Negative; Affirms at 'B plus'
8. Moody's Changes Nigeria's Sovereign Ratings Outlook to Negative From Stable; Affirms The B2 Ratings
9. Fitch Affirms Nigeria at 'B plus'; Outlook Stable

Related News - Rating Agencies on Banks

1. Coronavirus Shock Likely to Reduce Some Banks' Capital, Increase Credit Vulnerabilities
2. Fitch Maintains Access Bank's 'Aplus (nga)' National Long-Term Rating on RWN
3. Fitch Revises 2 Nigerian Banks' National Ratings
4. Banking System Outlook Update - Nigeria Outlook Changes to Negative Due to Oil Price Collapse
5. Various Rating Actions On Nigerian Banks By S and P Following Sovereign Downgrade; Outlooks Stable
6. Nigerian Banks at Severe Risk from Oil Price Slump, Coronavirus
7. Fitch Downgrades 3 Nigerian Banks to 'B', Places All 10 Banks on Negative Watch
8. Outlooks On Six Nigerian Banks Revised To Negative After Same Action On Sovereign
9. Fitch Revises Outlook on UBA Subsidiaries to Negative on Parent Action
10. Fitch Revises Outlook on 4 Nigerian Banks to Negative on Sovereign Action
11. Moody's Affirms Bank of Industry Ratings, Changes Outlook to Negative from Stable
12. Moody's Affirms Ratings of Nigerian Banks Following Action On The Nigerian Government
13. Fitch Affirms Union Bank of Nigeria Plc at 'B-'; Outlook Stable
14. Fitch Affirms Stanbic IBTC Bank at 'AAA(nga)'
15. Fitch Affirms Zenith Bank Plc at 'B' plus; Outlook Stable
16. Fitch Affirms Bank of Industry at 'B' plus; Outlook Stable
17. Fitch Affirms United Bank for Africa PLC at 'B' plus; Outlook Stable
18. Fitch Affirms Access Bank at 'B'; Stable Outlook
19. Fitch Affirms Guaranty Trust Bank at 'B' plus; Stable Outlook
20. Fitch Revises Outlook on FBNH to Stable; Affirms at 'B-'
21. S and P Global Ratings Affirmed ETI And Ecobank Nigeria Ltd Ratings; Outlook Stable
22. Fitch Rates Access Bank's Tier 2 Subordinated Debt Final 'A(nga)'
23. Fitch Affirms Ecobank Transnational Inc at 'B'; Outlook Stable
24. Access Bank 'B and B' Ratings Affirmed; Outlook Stable

Related News - Rating Agencies on Selected Companies and Notes

1. Moody's Announces Completion of a Periodic Review of Ratings of SEPLAT
2. Moody's Assigns Ratings to Dangote Cement Plc's DMTN Program and Proposed Series 1 Notes
3. Rating Actions Taken On Several Corporate Issuers With Exposure To Nigeria
4. Fitch Affirms Bharti Airtel at ''BBB-''; Off Watch Negative; Outlook Stable
5. Fitch Revises IHS's Outlook to Negative; Affirms at 'B plus'
6. Moody's Affirms Interswitch's Ratings; Outlook Remains Stable
7. Moody Changes Ratings for IHS, Seplat and DANGCEM Following Negative Rating on Sovereign Outlook
8. Moody's Assigns B2 Corporate Family Rating To Interswitch Limited; Outlook Stable

Related News - Rating Agencies on Kaduna State

1. Fitch Revises Outlook on Kaduna State to Negative on Sovereign Rating Action; Affirms at 'B'
2. Fitch Affirms Nigeria's Kaduna State at ''B''; Outlook Stable - Oct 11, 2019
3. Fitch Affirms Nigeria's Kaduna State at 'B'; Outlook Stable - May 04, 2018

Related News - Rating Agencies on Lagos State

1. Fitch Downgrades Lagos State to 'B' on Sovereign Rating Action; Outlook Negative
2. Fitch Affirms Nigeria's Lagos State at 'B plus'; Outlook Stable
3. Global Credit Rating (GCR) Downgrades Lagos State’s Environmental Municipality Note
4. Fitch Affirms Lagos State at 'B' Plus; Outlook Stable
5. Fitch Affirms Nigeria's Lagos State at ''B ''; Outlook Negative