Moody's moves BOAD outlook to stable

Moody's Investors Service said it confirmed the long-term foreign currency issuer and senior unsecured debt ratings of the West African Development Bank (BOAD) at Baa1 and changed the outlook to stable.

These actions conclude the review for downgrade started on March 18, the agency said.

Moody’s said it launched the review to consider the situation in Mali, some of the bank’s more challenging operating areas and the West African Economic and Monetary Union in supporting BOAD's capital position.

“The stable outlook reflects balanced risks over the next 12 to 18 months. The potential crystallization of new shocks emanating from the Sahel region with, in particular, the ongoing political transitions in Mali and Burkina Faso or from the consequences of elevated exposures to rising energy and food prices in some WAEMU member countries could affect BOAD's asset performance and lead to losses. Against these risks, the bank is implementing several initiatives to fortify its credit profile including a capital increase from BOAD's current shareholders and the arrival of new shareholders,” the agency said in a press release.

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