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Moody’s confirms BOAD’s credit rating at Baa1 and revises its outlook from negative to stable

The international rating agency Moody’s has confirmed the credit rating of Banque Ouest Africaine de Développement (BOAD) at Baa1, and improved its outlook from negative to stable, thus concluding the downgrade review period initiated on March 18, 2022.

Moody’s decision to place BOAD’s credit rating under review for downgrade in March 2022 followed the introduction of economic and financial sanctions against Mali decided by the ECOWAS Heads of State Conference on January 9, 2022, which, according to the agency, exerted pressure on BOAD’s asset quality.

Moody’s decision to confirm BOAD’s credit rating reflects the agency’s view that the risk of a deterioration in the Bank’s asset quality has been significantly reduced due to the lifting of sanctions against Mali, allowing Malian borrowers to repay their installments due to BOAD. It is also explained by the range of initiatives initiated and implemented by the Bank to strengthen the adequacy of its capital base and underpin the quality of its assets.

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, in particular the capital increase currently being finalized, are helping to strengthen BOAD’s credit profile and its resilience to external shocks.

The institution welcomes Moody’s confirmation of its rating and the improvement in its outlook as it implements its new strategic plan for the period 2021-2025 (“Plan Djoliba”) to increase its intervention capacity in the service of WAEMU countries. This decision reflects the actions taken by all the Bank’s staff to preserve and strengthen its fundamentals in order to cope with the exogenous shocks we are facing.

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 committed to carbon neutrality by 2023 and is an active member of the International Development Finance Club (IDFC), which brings together 24 national, regional and bilateral development banks.