In its latest review, the financial rating agency Moody’s confirmed the credit rating of the West bank-African Development (BOAD) to Baa1, and adjusted its outlook from negative to stable.
This is a fair return to normal following Moody’s placed the Bank’s rating under surveillance, considering that the quality of its assets might deteriorate due to its exposure to Mali, which was then under ECOWAS sanctions. The lifting of these sanctions therefore prompted the agency to reconsider the perspective of BOAD’s credit rating from the perspective to stable. Malian borrowers, including the State, can once once more repay their installments due to the Bank. Moody’s also justifies its decision by all the initiatives implemented by the Bank aimed, among other things, at strengthening the adequacy of its capital and supporting the quality of its assets.
Building resilience to exogenous shocks
The stabilization of BOAD’s outlook reflects the agency’s perception of contained risks over the next twelve to eighteen months: the initiatives implemented by the Bank, and in particular its capital increase currently being finalized, strengthen BOAD’s credit profile as well as its resilience to external shocks.
The Bank’s management welcomes the confirmation by Moody’s of its rating and the improvement in its outlook as it implements its new strategic plan for the period 2021-2025 (“Plan Djoliba”) in order to increase its capacity to intervene in the service of WAEMU countries.
