S&P RATES BOI SUBSIDIARY LECON FINANCE ‘B’

S&P Global Ratings has assigned LECON Finance Company Limited, a subsidiary of the Bank of Industry, ‘B’ long-term and short-term issuer credit ratings with a stable outlook.

In its latest rating action, S&P identified LECON Finance as a core subsidiary of BOI and said its ratings were aligned with those of its parent company. The agency expects the ratings of both institutions to move in tandem.

LECON Finance provides operating lease services to BOI and finance leasing solutions to businesses in Nigeria. S&P said operating leases accounted for 57 per cent of the company’s total leases at the end of 2025.

The company has also been expanding its finance leasing portfolio, particularly for micro, small and medium-sized enterprises seeking funds to acquire productive assets.

S&P noted that LECON Finance accounted for about 0.5 per cent of the BOI Group’s total assets at the end of 2025 but expects the company’s operations to continue expanding.

The rating agency also highlighted BOI’s financial support for its subsidiary. BOI deposited N20bn with LECON Finance in 2025, with plans to convert the funds into equity subject to regulatory approval. The investment forms part of a broader N50bn recapitalisation programme.

S&P said the stable outlook reflected its expectation that LECON Finance would remain a core BOI subsidiary and receive support when necessary.

The agency also expects growth in LECON Finance’s finance leasing portfolio to support profitability while asset quality remains under control.