{"id":10899,"date":"2017-02-16T08:51:39","date_gmt":"2017-02-16T07:51:39","guid":{"rendered":"https:\/\/nationalwire.com.ng\/?p=10899"},"modified":"2017-02-16T08:51:39","modified_gmt":"2017-02-16T07:51:39","slug":"fitch-revises-boi-outlook-to-negative","status":"publish","type":"post","link":"https:\/\/nationalwire.com.ng\/sub\/fitch-revises-boi-outlook-to-negative\/","title":{"rendered":"Fitch revises BoI outlook to negative"},"content":{"rendered":"

GLOBAL rating agency, Fitch, Wednesday, revised Bank of Industry\u2019s (BOI) Outlook to Negative from Stable, due to the health of the country\u2019s economy. Fitch, however, reaffirmed the bank\u2019s\u00a0 National long-term rating\u00a0 at AA+, as well as its Long-Term Issuer Default Rating (IDR) at \u2018B+\u2019.<\/p>\n

Reacting, Mr. Waheed Olagunju, Acting Managing Director of BoI, said\u00a0\u00a0 the reaffirmation of the bank\u2019s National Long Term rating by Fitch at \u2018AA+(nga)\u2019 is the most important thing for the development bank.<\/p>\n

He stated: \u201cIt reaffirms that our bank is well managed and our books are good. However, because we are owned by government and Nigeria\u2019s outlook was reviewed from stable to negative, therefore, it\u00a0 also affected the bank\u2019s rating because\u00a0 we are government owned.\u201d<\/p>\n

Revision of \u00a0Nigeria\u2019s Outlook<\/p>\n

\u201cBecause Nigeria\u2019s outlook has been revised it follows that BoI, too was downgraded. There is nothing we can do about that because we are government owned, but on standalone, they reaffirmed our bank AA+. We also know that the downgrade of the country\u2019s outlook was because of the recession.\u201d Fitch in its latest rating, said:<\/p>\n

\u201cThe revision of the development bank\u2019s outlook to negative is premised on \u201cThe recent revision of Nigeria\u2019s Outlook to Negative. BOI is a state-owned development bank and its IDRs are driven by its Support Rating Floor (SRF) of \u2018B+\u2019, which reflects a limited probability of sovereign support.<\/p>

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\u201cThe SRF factors in BOI\u2019s 99.9 per cent state ownership, policy role and strategic importance to Nigeria\u2019s economic and industrial development. It also reflects the authorities\u2019 stronger ability to support BOI than for commercial banks, as BOI\u2019s operations are almost entirely in local currency.<\/p>\n

\u201cBOI\u2019s funding is long-term and almost exclusively sourced from the Central Bank of Nigeria (CBN). BOI\u2019s Negative Outlook mirrors that on the sovereign rating. BOI\u2019s National Ratings reflect the bank\u2019s creditworthiness relative to the best credits in Nigeria. Fitch does not assign a Viability Rating to BOI as its business model is entirely dependent on the support of the state.<\/p>\n

\u201cBOI\u2019s IDRs, SR and SRF are sensitive to a weakening in the ability of Nigeria to support the bank, which would be indicated by a downgrade of Nigeria\u2019s sovereign rating.<\/p>\n

\u201cThe ratings could also be downgraded if Fitch\u2019s view of the state\u2019s willingness to support the bank changes adversely, for example in the event of a material change in the government ownership or a change in the bank\u2019s policy role.<\/p>\n

\u201cBOI\u2019s National Ratings are sensitive to a change in Fitch\u2019s opinion of BOI\u2019s creditworthiness relative to the best credits in Nigeria. The rating actions are as follows: Bank of Industry Long-Term IDR affirmed at \u2018B+\u2019, Outlook revised to Negative from Stable Short-Term IDR affirmed at \u2018B\u2019 National Long-Term Rating affirmed at \u2018AA+(nga)\u2019 National Short-Term Rating affirmed at \u2018F1+(nga)\u2019 Support Rating affirmed at \u20184\u2019 Support Rating Floor affirmed at \u2018B+,\u201d said the statement.<\/p>\n","protected":false},"excerpt":{"rendered":"

GLOBAL rating agency, Fitch, Wednesday, revised Bank of Industry\u2019s (BOI) Outlook to Negative from Stable, due to the health of the country\u2019s economy. Fitch, however, reaffirmed the bank\u2019s\u00a0 National long-term rating\u00a0 at AA+, as well as its Long-Term Issuer Default Rating (IDR) at \u2018B+\u2019. Reacting, Mr. Waheed Olagunju, Acting Managing Director of BoI, said\u00a0\u00a0 the …<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[23,17],"tags":[809],"coauthors":[2392,2393],"class_list":["post-10899","post","type-post","status-publish","format-standard","","category-business","category-news","tag-boi"],"yoast_head":"\nFitch revises BoI outlook to negative - National Wire<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nationalwire.com.ng\/sub\/fitch-revises-boi-outlook-to-negative\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Fitch revises BoI outlook to negative - National Wire\" \/>\n<meta property=\"og:description\" content=\"GLOBAL rating agency, Fitch, Wednesday, revised Bank of Industry\u2019s (BOI) Outlook to Negative from Stable, due to the health of the country\u2019s economy. 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