Moody’s Investors Service has affirmed the East African Development Bank’s (EADB) investment grade rating of Baa3 with a stable outlook. The rating reflects the bank’s robust capital position, improved asset quality, and strong liquidity levels, reinforcing its status as a key financial institution in the region.
Moody’s highlighted EADB’s low non-performing assets (NPA) ratio, which stood at 0.8 percent by the end of 2023, and emphasized the bank’s improved liquidity. This improvement was largely attributed to a strategic shift of cash and term deposits from unrated to highly rated offshore banks. The bank’s leverage ratio also remains among the lowest compared to its regional peers, further solidifying its financial stability.
Moody’s also acknowledged the bank’s reliance on concentrated credit lines from multilateral development banks (MDBs), which provide stable and affordable financing. The stable outlook assigned to the rating underscores Moody’s expectation that the EADB will continue its prudent lending practices under its new 2024-2028 strategy. Furthermore, the credit agency noted that the bank’s ongoing efforts to diversify its loan portfolio and strengthen its risk management framework could pave the way for future upgrades.
Vivienne Yeda, the Director General of the EADB, expressed satisfaction with the rating, stating, “For over 50 years, the Bank has supported robust growth and transformation in the region. We are proud that Moody’s has affirmed our investment grade rating as the highest-rated institution in East Africa. This is beneficial in mobilizing cost-effective financing to support both public and private sector enterprises, fostering sustainable and inclusive socio-economic development in East Africa.”
The reaffirmation of EADB’s Baa3 rating not only highlights the institution’s financial health but also enhances its credibility, helping it access affordable capital to support development projects across East Africa.
The East African Development Bank has been a driving force behind economic growth and development in East Africa for over five decades, providing financial solutions to both public and private sector entities. The bank remains committed to its mission of fostering sustainable and inclusive developmet in the region
