GCR Ratings (“GCR”) affirmed the long-term issuer rating of AA- (WU) from the African Guarantee and Economic Cooperation Fund (FAGACE) on November 30, 2022. This note is displayed with a stable perspective.

The rating of the African Guarantee and Economic Cooperation Fund (FAGACE) is based on a solid liquidity profile and a modest quality of its assets and a very good adequacy of its capital, which compensates for an improved business profile. Indeed, compared to the country risk in its areas of intervention, GCR considers the capitalization of FAGACE to be very solid due to very good financial leverage (44%). He therefore expects that FAGACE's equity position will strengthen in the short term, reinforced by the planned entry of new States into its capital in 2022, which will bring the subscribed capital to 500 billion FCFA francs (+114%).

Supported by the growth of its portfolio of interventions in a context of controlled risk, the capital position will also increase as the Fund returns to high and stable profitability. FAGACE's rating is weakened by the still modest level of its exhibitions and by its sphere of development. It is characterized by its sphere of development characterized by a concentration of cumulative approvals in Côte d'Ivoire (+22%), Senegal (+21%) and Benin (+19%) and by gross warranty commitments that are structured around three sectors of activity that represent nearly half of the interventions (Industry: 17%, Telecommunications: 15%, Energy: 16%).