Moody’s ups PTA Bank view to positive

Moody's Investors Service said it changed the outlook of Eastern and Southern African Trade and Development Bank – also known as PTA Bank and Trade and Development Bank – to positive from stable, affirming the Ba1 long-term issuer rating.

“The key driver behind Moody's decision to place the credit on positive outlook is the bank's improving asset quality performance, reflecting structural improvements in the bank's risk management and loan origination processes over the last few years,” the agency said in a news release.

“The non-performing loan ratio has fallen to below 3%, despite rapid loan book growth between 2013 and 2016. TDB is building a strong track in asset quality which, if sustained, may lead to further upward rating pressure in the future.

“The Ba1 rating reflects Moody's assessment of the bank's capital adequacy, liquidity position and the strength of shareholder support at low.”

Concurrently, the agency affirmed the bank’s Ba1 senior unsecured outstanding debt rating and the provisional Ba1 senior unsecured medium-term note program rating.

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