Fitch lowers PTA Bank view to negative

Fitch Ratings said it revised Eastern and Southern African Trade and Development Bank’s (PTA Bank) outlook to negative from stable and affirmed the long-term issuer default rating at BB.

The short-term issuer default rating also was affirmed at B, Fitch said.

The outlook revision reflects pressure on asset quality stemming from a rapid rise in loan arrears since late 2014, Fitch said, as well as the rapid growth of the bank’s operations.

The company’s credit risk has deteriorated rapidly since late 2014, although the bank exhibits a fairly low headline level of impaired loans, the agency said.

The bank has managed to reduce its risk exposure through recourse to credit insurance and sale of credit exposure to other financial institutions, Fitch added.

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