Bloomfield Investment has maintained unchanged the long-term rating "A with a stable outlook" previously awarded to Oragroup S.A. parent company of the Banking Group Orabank, announced the leaders of this rating agency based in Abidjan.

Bloomfield also kept unchanged the short-term rating which is "A2 with a stable outlook". The rating is valid during the period from September 2020 to August 2021. The justification for the long-term rating and the outlook is based on Oragroup's high credit quality. "The protective factors are good," Bloomfield executives said. However, they believe that the risk factors are more variable and more important in times of economic pressure.

In the short term, the score awarded is based on the certainty of timely repayment which is good. Bloomfield also notes that liquidity factors and essential elements of companies are sound. "While ongoing financing needs may increase total financing requirements, access to capital markets is good," notes Bloomfield, who calls the risk factors minimal. The rating is based on four positive factors. Bloomfield cites a good capacity to mobilize resources, supported by excellent financing flexibility, a strengthening of the governance framework, acquired support from shareholders and a good evolution of the performance indicators of the Group's banking activity.

Bloomfield executives, however, noted a number of factors that make Oragroup's rating fragile. In particular, they referred to the holding company's net income, which was down, in line with the decrease in dividends received from subsidiaries and insufficient control of expenses, a significant increase in the holding company's debt, due to the mobilization of loans for the Group's development, a delay in achieving financial  performance objectives or the Evolving Cost of Risk for the Group.

 Created in 2000 as a limited company with a Board of Directors, the Financial BC group has been a holding company with financial participation since 2009, present in 12 countries in West and Central Africa. The company subsequently changed its name in 2011 to ORAGROUP SA.

It had achieved at December 31, 2020 a consolidated profit after tax of 18.327 billion FCFA, a strong increase of 46.72%. Its balance sheet total had increased from 2159.904 billion FCFA in 2018 to 2634.338 billion FCFA in 2019 (+21.96%).

Its net banking income increased by 19.934 billion CFA francs, from 126.918 billion in 2018 to 146.842 billion in 2019. The same upward trend is noted at the level of gross operating income with a realization of 46.495 billion FCFA (+31.66%).

However, the cost of risk has increased by 4.655 billion CFA francs with a level that stands at 22.705 billion against 18.050 billion in 2018. For its part, the operating result was up 37.79% to 23.790 billion FCFA against 17.265 billion FCFA at December 31, 2018.