Fitch moves BOAD outlook to negative

Fitch Ratings said it revised the outlook on Banque Ouest Africaine de Developpement (BOAD) to negative from stable and affirmed the issuer default rating at BBB.

“The revision of the outlook primarily reflects increased credit risk faced by the bank, as evidenced by a weakening in the credit quality of its loan portfolio and the temporary suspension of loan repayments to the bank by Guinea Bissau, accounting for 5% of total loans.

“While the ongoing capital increase should support the bank's solvency, in Fitch's view, there is an elevated risk that non-performing loans (NPL) increase to a level not compatible with the current rating,” the agency said in a press release.

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