BOA Niger, a Nigerian subsidiary of the Moroccan banking group Bank of Africa, received a long-term A- rating with a stable outlook, A2 on the short-term with a stable outlook from financial rating agency Bloomfield Investment Corporation.
According to the agency, this note on the long term is justified by “a high credit quality. The protective factors are good. However, risk factors are more variable and more important in times of economic pressure.
In the short term, the note demonstrates the certainty of timely repayment is good. The liquidity factors and the essential elements of the companies are healthy. While ongoing financing needs may increase overall funding requirements, access to capital markets is good. Risk factors are minimal.
The rating was based on these factors: maintaining its position on the Niger market; an increase in net income thanks to the increase in operating performance; a reformed regulatory framework with the entry into force of the WAEMU Revised Chart of Accounts and the new prudential framework and technical, strategic and financial support of the BOA group.
However, there are, according to the agency, some credit quality fragility factors that indicate a high country risk, due to the fragile economy, large public spending, and the deterioration of the security situation; a lower liquidity ratio in 2017 and a deterioration in the quality of the debt portfolio.
Recall that the bank posted for the first quarter of 2018, an increase of 9.8% of its estimated profit to 2,239 billion FCFA (4,08 million dollars), against 2,039 billion FCFA (3,71 million dollars) to the March 31, 2017, an increase of 200.3 million FCFA in absolute value.