BoI secures A- rating from Agusto & Co
The Bank of Industry (BOI) has secured a domestic credit rating of A- from Agusto & Co, a leading Nigerian credit rating agency.
By the rating, the bank has been adjudged to be a financial institution with good financial condition and a strong capacity to repay obligations on a timely basis.
This is the first Nigerian development bank to be so rated.
According to a statement from the bank, Agusto & Co was engaged to carry out an assessment of the financial institution’s performance and to issue a credit rating for it, based on a multitude of qualitative and quantitative factors. The objective was to provide useful benchmarks for BoI against global best practices.
The engagement was successfully completed and a rating of A- with a Stable Outlook was issued in December 2014.
The bank had in 2014 commenced the implementation of a corporate transformation project leading to the development of a five-year strategic plan which is currently being implemented.
The key strategic issues addressed by the transformation plan include the diversification of the bank’s funding base; development of robust risk management systems; effective cost management; performance management systems; credit process reengineering and automation; customer service delivery; new product development; loan quality, corporate governance; national coverage; and stakeholder management.
According to the bank’s Managing Director, Rasheed Olaoluwa, “the positive rating is an endorsement of our ongoing transformation project at BoI, and an affirmation of our strategic intent of adopting global best practices in all aspects of our operations.”
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