Fitch lifts PTA Bank to stable

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

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

The outlook revision reflects the improvement in the bank's credit quality and the clearance of the arrears on the facility granted to Zambia, Fitch said.

The large facility granted by PTA Bank to Zambia to fund oil imports is now performing, the agency said.

As a result of a significant build-up of arrears, this facility was rescheduled in July 2015 over 18 months ending in December 2016, Fitch said.

The bank’s impaired loan ratio also further reduced to 2.7% at year-end 2015, compared to 4.7% in 2013, the agency said, and remained at this level in the first half of 2016.

Growth in lending is expected to resume in 2017, Fitch added, and will be more focused on project loans and infrastructure finance.

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