Bloomfield Investment Corporation has confirmed the long-term “A with a positive outlook” rating previously awarded to Bank Of Africa (BOA) Burkina Faso, a subsidiary of the banking group of the same name, announced the executives of this rating agency based in Abidjan.
The short-term rating also remains maintained at “A1 with a stable outlook.” The validity of the rating is from May 2021 to April 2022.
In the long term, Bloomfield’s management justifies the rating and the outlook attached to it by the high credit quality. They also believe that the protective factors are good. “However, Bloomfield points out, the risk factors are more variable and more important in times of economic pressure.”
In the short term, the rating awarded to BOA Burkina Faso is justified by the certainty of timely repayment which is very high. The Bloomfield executives add that the liquidity factors are “excellent and supported by good protective factors of the essential elements.” As for the risk factors, they are characterized as minor.
The rating is based on a number of positive factors such as further strengthening of the governance framework, good capacity to implement the Plan
Triennal de Développement (PTD) 2019-2021 despite the Covid 19 crisis, a significant increase in resources collected from customers, leading to an improvement in the bank’s positioning. Bloomfield also reports “an improvement in equity returns despite lower net income, consolidating financial flexibility and a reassuring outlook for business development.”
However, the officials of the rating agency noted factors of weak credit quality. These include the continued sharp decline in the cost of risk in a context of slowing economic activity due to Covid 19, worrying social and security conditions.