Moody's assigns high rating to BOAD
The institution received first-time Baa1 issuer rating.Moody's has assigned a foreign and local currency issuer rating of "Baa1" to the West African Development Bank (BOAD), with a stable outlook.
This is one of the highest ratings assigned by Moody's to a regional institution in Africa.
According to Moody's, the first-time rating reflects the solid liquidity position of the BOAD and the "medium strength of member support".
"At year-end 2014, BOAD's treasury assets represented 18 per cent of its total assets and more than covered debt repayment", Moody's said in a statement.
Another key factor underpinning BOAD's Baa1 rating is Moody's assessment of its weak capital adequacy. Past efforts to bolster the bank's balance sheet resulted in the conversion of the bank's Energy Development Fund (EDF) into equity, boosting many of the bank's asset coverage and leverage ratios.
The bank's non-performing loans levels are moderate, averaging 4.3% over the last seven years.