The Fitch Ratings rating agency has revised the outlook for the long-term issuer default rating (IDR) of the West African Development Bank (BOAD) from stable to negative from stable to negative and has confirmed the IDR to “BBB”.

The revision of the outlook primarily reflects the increased credit risk that the bank faces, as evidenced by the weakening of the credit quality of its loan portfolio and the temporary suspension of loan repayments to the bank by Guinea Bissau, representing 5 per cent of total loans. BOAD's “BBB” rating is driven by its Autonomous Credit Profile (SCP) of “bbb”, which reflects the lowest of its creditworthiness (a-) and liquidity (a) ratings and a negative adjustment of two notches to reflect the “high-risk” business environment in

Fitch expects both capital ratios to be broadly stable over the medium term, reflecting paid-in capital payments spread over five years beginning in 2023 and the continued expansion of banking operations.