Fitch upgrades PTA Bank

Fitch Ratings said it upgraded Eastern and Southern African Trade and Development Bank's (PTA Bank) long-term issuer default rating to BB+ from BB.

The outlook is stable.

Fitch also said it affirmed the bank's national long-term rating at AAA(ken) with stable outlook.

The upgrade reflects the improvement in an assessment of the bank's solvency and liquidity to BBB+ from BBB, Fitch said.

Based on the bank's lending growth projections, continued high internal capital generation and ongoing capital payments, the agency said it believes that the equity-to-asset ratio will remain in the range of 18% to 20% over the forecast horizon, the agency said.

The upgrade also considers a strengthening in the bank's risk profile and a marked increase in the size and quality of the bank's liquid assets, Fitch said.

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