Fitch: PTA Bank to positive

Fitch Ratings said it affirmed Eastern and Southern African Trade and Development's (PTA Bank) long-term issuer default rating at BB-, short-term issuer default rating at B and national long-term rating at AA+(ken).

The outlook also was revised to positive.

The outlook revision reflects a sharp decline in non-performing loans as a result of the restructuring of a trade-finance deal with Zimbabwe, which has been in default since 2009, Fitch said.

The $39.4 million impaired trade finance loan, which represented the bank's second largest exposure, was restructured in late 2011. As a result, credit quality has improved significantly with non-performing loans falling to 4.7% at the end of 2011 from 10.9% at the end of 2010, the agency said.

Growth in trade finance activity has resulted in a marked improvement in profitability, further supporting the outlook revision, Fitch added.

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