Moody's lifts Trade and Development Bank

Moody's Investors Service said it upgraded the long-term issuer rating of the Eastern and Southern African Trade and Development Bank, also known as Trade and Development Bank, to Baa3 from Ba1 and changed the outlook to stable from positive.

The upgrade reflects the credit enhancement provided by the recently revised mid-term credit risk mitigation instrument, which increases the likelihood of timely support in the event of a call on callable capital by the bank, Moody's said.

The upgrades also consider the improvement of the bank's asset quality and capital position, the agency said.

The terms of the instrument do not qualify for full credit substitution and therefore constrain the size of the credit uplift.

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