The Fitch attributed the rating of investment “BBB” with a stable outlook to the West African Development Bank (BOAD), due to the support it receives from the BCEAO and its levels of capitalization and debt rather favorable.
The International rating agency Fitch Ratings assigned to the West African Development Bank (BOAD), June 11, the “BBB” rating, together with a stable outlook for its long-term emissions. This note, which belongs to the emissions category called “investment” reflects the strong support enjoyed by the BOAD from all its shareholders: the eight member states of the Economic Union and West African Monetary (49%), the Central Bank of West African States (45%) and non-regional shareholders (6%).
The agency notes that 64 % of loans are granted to the eight member states (Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal, Togo) or endorsed by them and that BOAD has never suffered a fault payment on its sovereign loans.
Environment
Although the BOAD operates in a difficult regional environment (high poverty rates, low levels of human development , political instability), its levels of capitalization and indebtedness remain controlled
Finally, says the rating agency. – considered unlikely that the scenario of a devaluation of the CFA franc vis-à-vis the euro could threaten BOAD – policies implemented by the financial institution allowed to control liquidity risk
Comprehensive assessments that significantly coincide with those made by the US rating agency. Moody’s in May. The rival agency had in fact attributed to the BOAD note “Baa1″ with a stable outlook, highlighting the strong liquidity position of the institution and shareholder support.
Ambitions
The BOAD therefore has a better credit rating than those of the East African Development Bank (EADB), the Bank of Commerce and development of Eastern and Southern Africa (PTA Bank) and the Company for Habitat and Housing in Africa (Shelter-Afrique), all three rated “Ba1″ by Moody’s, or in the category of obligations say “speculative”.
The following BOAD by far the African Development Bank (ADB) which was awarded the highest rating (AAA) by the two rating agencies.
Ambitions
These ratings are encouraging for BOAD, which has pledged to mobilize 5,763 billion CFA francs (8.79 billion euros) – more than double of the amount invested in 40 years – to become, by 2019, “a strong development bank for integration and economic transformation in West Africa,” according to the ambitions expressed by its leader, Beninese Christian Adovelande. An ambitious challenge which must necessarily pass through fund raising in international markets
. Clementine Pawlotsky
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