Bloomfield Investment Corporation has confirmed the long-term rating “A + with a positive outlook” awarded in 2020 to Bank Of Africa (BOA) Benin, a member of the banking group of the same name, announced the executives of this rating agency based in Abidjan.
Bloomfield also confirmed the short term rating which was “A1 with a stable outlook”.
The rating is valid from May 2021 to April 2022.
The rationale for the rating and its long-term outlook is based on “high credit quality”. In addition, the agency notes that the protective factors are good. However, she tempers, the risk factors are more variable and more important in times of economic pressure.
In the short term, the rating is based on very high certainty of timely repayment. At this level, Bloomfield argues that “the liquidity factors are excellent and supported by good critical elements protection factors.” As for the risk factors, they are considered minor by the rating agency.
The rating is based on a number of positive factors. Among which, there is the resilient nature of the Beninese economy in the face of the health crisis, the maintenance of the leading position in the banking market, a strategy adapted to economic developments, not to mention the satisfactory level of performance indicators of the bank in view of the context of the health crisis linked to Covid-19.
Bloomfield officials, however, noted a few factors of weak credit quality. These include, among other things, a slower pace of lending activities, significant withdrawals from institutional clients or a drop in net income, under the effect of a significant increase in the cost of risk.