Moody’s looks negatively on BOAD

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

“The decision to change the outlook to negative from stable reflects Moody's view that the deterioration of BOAD's operating environment in the West African Economic and Monetary Union (Waemu) – evidenced by a coup d'état in Niger, after Mali and Burkina Faso – creates significant risks to the Bank's balance sheet.

“Not only the economic and financial sanctions on Niger result in accumulation of arrears which will negatively affect BOAD's asset performance and ultimately its capital adequacy, but lasting tensions between the military juntas and the rest of the Economic Community of West African States (Ecowas) and heightened insecurity in various countries in the region may significantly affect BOAD's balance sheet, given its large exposure to these countries,” Moody’s said in a press release.

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