Moody’s shifts West African Development view to negative

Moody’s Investors Service said it changed the outlook on the West African Development Bank’s rating to negative from stable and affirmed the bank’s long-term foreign-currency issuer and senior unsecured Baa1 ratings.

The outlook reflects downside pressure on the bank’s asset quality and performance stemming from the pandemic and heightened political instability in Mali, which accounts for 11% of its total loan exposure, Moody’s said.

Moreover, since the bank’s borrowers are also its main shareholders, any widespread stress on borrowers from the pandemic that affects their capacity to reimburse loans would simultaneously hurt their ability to add new capital, the agency said.

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