Moody's Investors Service has confirmed the East African Development Bank (EADB)'s Baa3 long-term issuer rating. The stable outlook is maintained.

The rating agency indicated on September 29, 2023 that “the affirmation of the rating reflects the strong financial position of the EADB, offset by the low credit quality of development assets and an inheritance of high non-performing assets (NPA). Liquidity and financing benefit from liquidity levels of liquidity and funding relatively robust but are marked by a funding structure that is less diversified than that of many rating peers.” According to him, “the stable outlook reflects a balance between upside and downside risks. Despite the risks associated with a difficult operating environment and the high concentration of the BEAD portfolio, the potential for capital erosion is mitigated by the Bank's currently very low leverage ratio and by its cautious approach to new loans