Fitch ups East African Development Bank view to stable

Fitch Ratings said it affirmed East African Development Bank's long-term issuer default rating at B- and short-term issuer default rating at B.

The outlook has been revised to stable from negative.

The outlook change reflects the efforts made by the bank's new management team to review the bank's lending policies, increase provisions and reduce its loan portfolio, Fitch said.

These efforts resulted in an improvement in the financial performance of the bank, which recorded a modest profit in 2009 and the first half of 2010, the agency said.

But the bank remains exposed to a legal dispute that is a major source of risk given the potential loss involved, Fitch said.

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