By clicking "Accept", you consent to the use of ALL the cookies. For more information please see GCR's privacy related policies here.
The operating environment factors in concentration of developmental exposures to a relatively stronger grouping of East African countries, a less diverse sovereign membership base, and adequately demonstrated track record of preferential treatment, which we think is evidence of the relevance and importance of this institution to its shareholders. However, the balance sheet is exposed to the high operating environment risks of East Africa. We believe these risks remain elevated, reflecting the direct and indirect impact of the COVID-19 pandemic.
The outlook is stable reflecting our opinion that the Bank has capacity to carry out its mandate considering the pandemic, supported by a strong balance sheet. The ratings could be lowered if the strength of shareholders reduce, or if the mandate track record diminishes on the back of a sustained reduction of the Bank’s development book, substantial deterioration in capital, credit losses exceed our expectations, and/or there is an increase in funding and liquidity risks.