Lomé, May 5 – The international financial rating agency Fitch has just confirmed the BBB credit rating with stable outlook of the Banque Ouest Africaine de Développement (BOAD). It revised BOAD’s intrinsic rating (SCP) from ” BB+ ” to ” BBB ” following a series of good performances and recent developments deemed positive by the agency.
Following this improvement, BOAD’s rating with Fitch is now determined by its intrinsic rating, rather than by the assessment of its shareholders’ support. The Bank’s ” BBB ” rating is based on a creditworthiness score of ” A – “, and a negative adjustment of two notches reflecting the business environment in which the bank operates (deemed to be at risk ” high “). BOAD’s liquidity is rated at ” A “.
The improvement in BOAD’s intrinsic rating is based, among other things, on the Bank’s recent capital increase of CFAF 554 billion, equivalent to 50% of subscribed capital, the strengthening of capitalization ratios, the resilience of the risk profile, and the Bank’s access to the Central Bank’s refinancing window.
The institution is delighted with the confirmation of its rating and stable outlook, and welcomes the upgrading of its intrinsic rating at a time when it has just closed the 2022 financial year with a higher level of activity and net profit, and completed the first phase of the increase in its capital from 1155 billion FCFA to 1709 billion FCFA.
On the announcement of this rating, President Ekué had this to say ” This is a great achievement for our institution, its teams and above all its shareholders, who have given us their unfailing support. It also confirms the relevance of the initiatives we have taken to help our member states in the current economic, social and security context, and encourages us to pursue our ambition, as set out in the Djoliba 2021-2025 plan, to double the level of our operations and become a Development Bank operating to the full extent of its mission. to meet our customers’ needs as closely as possible, including by providing innovative financing solutions for development projects “
About West African Development Bank
The Banque Ouest Africaine de Développement (BOAD) is the joint development finance institution of the countries of the West African Monetary Union (WAMU). According to Article 2 of its Articles of Association, the BOAD’s purpose is to “promote the balanced development of member states and achieve economic integration in West Africa” by financing priority development projects. It is accredited with the three climate finance mechanisms (GEF, AF, GCF). Since 2009, BOAD has been an observer at the UNFCCC, taking an active part in discussions on the construction of an international climate finance architecture. Since January 2013, it has been home to the first Regional Collaboration Center (CRC) on the Clean Development Mechanism (CDM), whose aim is to provide direct support to governments, NGOs and the private sector in identifying and developing CDM projects. It is an active member of the International Development Finance Club (IDFC), which brings together 26 national, regional and bilateral development banks from around the world.
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