Moody’s affirms BOAD’s rating at Baa1 and revises its perspective from negative to stable
The international rating agency Moody’s has confirmed the long-term foreign currency issuer rating of the West African Development Bank (BOAD) at Baa1 and improved its outlook from negative to stable, concluding the review for downgrade initiated on 18 March 2022.
Moody’s decision to place BOAD’s credit rating under review for downgrade in March 2022 followed the imposition of economic and financial sanctions on Mali by ECOWAS head of states conference on January 9, 2022, exerting pressure on BOAD’s asset quality according to the agency.
Moody’s decision to confirm BOAD’s credit rating reflects its view that the risk of deterioration in the Bank’s asset quality has been significantly reduced due to the lifting of sanctions imposed on Mali, allowing Malian borrowers to resume debt repayments due to the BOAD. It is also explained by all the initiatives initiated and implemented by the Bank aimed at strengthening its capital adequacy and supporting the quality of its assets.
The stabilization of BOAD’s outlook reflects the agency’s perception of balanced 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 institution welcomes Moody’s decision to confirm its rating and improve its outlook as it is implementing its new strategic plan for the period 2021-2025 (“Plan Djoliba”) to increase its intervention capacity for the benefit of WAEMU countries. This decision reflects the actions implemented by all the Bank’s employees to preserve and strengthen its fundamentals in order to cope with the exogenous shocks we are facing.
About the West African Development Bank
The West African Development Bank (BOAD) is the common development finance institution of the member countries of the West African Monetary Union (WAMU). It is an international public institution whose purpose, as provided under Article 2 of its Articles of Association, is to promote the balanced development of its member countries and foster economic integration within West Africa by financing priority development projects. It is accredited to the three climate finance facilities (GEF, AF, GCF). Since 2009, BOAD sits as an observer at the UNFCCC and actively participates in discussions on devising an international climate finance system. Since January 2013, it has been home to the first Regional Collaboration Centre (RCC) on Clean Development Mechanism (CDM), whose aim is to provide direct support to governments, NGOs and the private sector in identifying and developing CDM projects. The Bank is committed to carbon neutrality by 2023 and is an active member of the International Development Finance Club (IDFC) bringing together 24 national, regional and bilateral development banks.