On November 30, 2022, at the end of its evaluation mission, the rating agency GCR Ratings (“GCR”) concludes in its report that the African Guarantee and Economic Cooperation Fund (FAGACE) presents, in the long term, a high credit quality
On its regional scale, GCR Ratings assigns FAGACE the long-term rating of “AA-”, in investment grade, while its short-term rating is “w-2”. The outlook attached to these ratings is “stable”.
GCR ratings are based in particular on the following key performance factors:
(i) A strong mandate, oriented towards the development of member countries;
(ii) (ii) Very solid capitalization due to very good financial leverage compared to the country risk of its areas of intervention;
(iii) and (iii) very high liquidity of assets, in line with its very conservative investment policy favoring liquid investment vehicles which gives it significant cushions of liquid assets, a large part of which is available in the short term .
The outlook attached to FAGACE’s rating is stable: GCR justifies this stable outlook by the fact that the Fund should maintain its good capitalization profile due to the existence of additional release potential in the short term. In addition, the good liquidity profile should be maintained and the geographic and sectoral concentrations of interventions should remain strong.
It should be noted that this FAGACE rating established by GCR RATINGS confirms that of WARA published in 2021.
