The rating agency GCR Ratings (“GCR”) raised the long-term issuer rating of the African Guarantee and Economic Cooperation Fund (FAGACE) from AA- (WU) to AA (WU) on its regional rating scale on November 29. The outlook for this rating is positive.

The improvement of the rating of the African Guarantee and Economic Cooperation Fund (FAGACE) reflects the improvement of its risk profile thanks to a strengthening of its exposure management practices and efforts to clear its portfolio of development-related assets, which have made it possible to bring the rate of non-performing assets to a level comparable to that of its pairs. GCR notes that starting in 2021, FAGACE strengthened its risk management framework by setting up a model for assessing and classifying risks and credits. As a result, the quality of the portfolio of assets related to the development of FAGACE improved, with a decrease in the rate of non-performing assets to 2.5% in September 2023 (2022:8.3%).

The positive outlook reflects GCR's opinion that FAGACE's rating could be further improved if the Fund succeeds in increasing its capital to strengthen its financial leverage in accordance with GCR criteria, while planning ahead Significant the share of non-performing assets in its intervention portfolio.