TDB Achieves New Milestone With First Investment Grade Rating

Posted on: June 21st, 2018

• Moody’s Rating for TDB upgraded to Baa3 with outlook stable
• GCR Rating for TDB upgraded to BBB – with outlook stable
• Ratings confirm TDB’s resilient business growth model and strong financial profile

Credit rating agencies, Moody’s and Global Credit Ratings (GCR) have upgraded the Eastern and Southern African Trade and Development Bank ‘s (TDB) long term international scale foreign currency rating to BBB- with the outlook stable by GCR and Baa3 with outlook stable by Moody’s.

“We are very pleased that Moody’s and GCR have upgraded TDB to Investment Grade. This is a reflection of the Bank’s commitment to a series of reforms aimed at strengthening risk management, corporate governance and talent. We take great pride in this achievement, and in joining the small circle of investment grade rated African banks. In line with TDB’s Corporate Plan 2018-2022, we will continue to build on our existing strengths and we will continue to mobilize resources to support the financing of sustainable growth and transformation of the Eastern and Southern Africa region,” said Admassu Tadesse, President and Chief Executive Officer of TDB.

TDB’s investment grade rating and related stable outlook is mainly the reflection of
(i) the Bank’s risk management policies and functions, which have helped to improve asset quality.
(ii) (ii) the diversity of the Bank’s funding/support base.
(iii) (iii) credit enhancement undertakings by the Bank with investment grade rated insurers.

The agencies concluded that TDB has a “favorable strategic position on the African continent, derived from its development mandate and broad equity participation, comprising of ten institutional investors, 20 African governments (following the entry of Swaziland in 2017), and the governments of China and Belarus from outside the region. Given the shareholder diversity and the provisions of the Bank’s Charter (limiting any single shareholding to 15%), the level of sovereign interference risk is considered to be relatively low. The Bank’s unique trade and development expertise and highly experienced management team underpin its leverage with governments in the region.”