Bloomfield Investment Corporation has reassessed FAGACE’s financial rating and has decided to upgrade the long-term rating from BBB+ to A- (investment grade), with a stable outlook, and to maintain the short-term A2 rating (investment grade), with a stable outlook.
The Agency notes the successful implementation of the strategic plan, taking into account the revision of internal procedures, as well as actions to strengthen the risk management system, have enabled a revival of activities as of fiscal 2018. It notes the positive impact of these reforms on the Fund’s overall performance, with in particular a reduction in the cost of risk in 2018.
In line with the caution observed by FAGACE, guarantee income recorded growth of 32%, which was however absorbed by the decline (-8%) in financial income. However, the Agency is observing good momentum in the 1st half of 2019, with a completion rate of 90% at June 30, 2019 (new guarantees granted of 13,059 million CFA francs).
In addition, this rating follows that of the Association of African Development Finance Institutions (AADFI), which awarded FAGACE an A rating with Mention Bien, giving it a place on the AADFI’s “2019 Honor Roll of Ratings”.
These results above all reflect the achievements of the profound transformations observable and in order within the Fund. Indeed, since 2017, FAGACE has undertaken a series of reforms to comply with the best standards in terms of governance, prudential financial standards and operational standards in order to respond more effectively to the expectations of the financial market.
FAGACE’s new dynamic is also a signal to its partners, as the rating brings great comfort to partner credit institutions, particularly those that comply with Basel II and III standards.
In this context, the Fund intends to accelerate the development of partnerships with credit institutions to help them effectively implement their strategies for financing national economies, particularly through their SME fabric.
Today, FAGACE is active in 14 countries, with some fifty partner financial institutions with whom the Fund not only shares financing risks, but also consolidates their capacity to manage their portfolios. It is also, and above all, a strengthened governance model, operational excellence in line with the most demanding prudential standards, more than 400 billion CFA francs in commitments and more than 2,000 billion CFA francs in loans mobilized for the benefit of the economies of its member states.
