Fitch ratings affirms BOAD’s credit rating at BBB with a stable outlook and upgrades its standalone credit profile to BBB from BB+

Lomé, 5 May 2023: Fitch Ratings has just affirmed the credit rating of the West African Development Bank (BOAD) at BBB, with a stable outlook and upgraded its standalone credit profile (SCP) to BBB from BB+, following a range of sound performance and recent developments deemed positive by the agency.

As a result of this upgrade, BOAD’s rating by Fitch is now determined by its standalone credit rating, rather than by the assessment of its shareholders’ support. The Bank’s “BBB” rating is driven by a creditworthiness rating of “A-“, with a negative two-notch adjustment reflecting the Bank’s “high risk” business environment. BOAD’s liquidity is rated “A”.

The improved standalone credit profile of BOAD is driven, among other things, by the Bank’s recent capital increase of XOF554 billion, representing 50% of its subscribed capital, the strengthened capitalization ratios, the resilient risk profile, and the Bank’s access to the Central Bank’s refinancing window.

The institution welcomes the confirmation of its rating and stable outlook as well as the upgrade of its standalone credit profile, while it has just closed the FYE2022 on increased activity level and net income, and completed the first phase of its capital increase, bringing it to XOF1.709 billion from XOF1.155 billion.

Reacting to the rating announcement, President Serge Ekue said: “This is a mark of satisfaction for BOAD, its teams and, above all, its shareholders, who lend to the institution their unfailing support. This is further a confirmation of the relevance of initiatives taken for the benefit of our member countries in the current economic, social and security context, and an incentive to uphold our ambition under the 2021-2025 strategic plan, which is to double the level of our support and operate as a development bank in the best interest of our clients, by providing innovative finance solutions for development projects.