Reviews & Outlooks | |
Reviews & Outlooks | |
907 VIEWS | |
![]() |
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
Related News - Rating Agencies on Banks
Related News - Rating Agencies on Selected
Companies and Notes
Related News - Rating Agencies on Kaduna
State
Related News - Rating Agencies on Lagos State