Moody's rates PTA bond Ba1

Moody's Investors Service said it assigned a Ba1 rating to the new $300 million 6 7/8% bond issued by the Eastern and Southern African Trade Development Bank (PTA Bank).

The eurobond, which will mature in December 2016, is the bank's first issuance in the global capital markets and is its first drawdown from its $1 billion euro medium-term program.

The rating reflects the bank's proven resilience to shocks, which is supported by its strong liquidity and its ongoing efforts to strengthen governance and risk management, Moody's said.

The rating also considers its weak asset quality, as reflected in the bank's high level of non-performing loans and low capital adequacy ratio in relation to risk assets, the agency said.

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