Moody’s Investor Service Credit Analysis 2017


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Strong capital and liquidity positions, balancing the average low credit quality of its
shareholders and portfolio concentration risks, continue to underpin the East African
Development Bank's (EADB) credit profile.

The bank's strong capital buffers, which remain among the highest in our multilateral
development bank (MDB) universe, with an asset coverage ratio of 120% in 2016, and
high liquidity position supported by modest gearing ratios (debt-to-equity ratio of 49%),
are its key strengths. Although rising loan growth will cause its capital and leverage ratios to deteriorate modestly, this is in line with our expectations, and will be partly offset by additional equity injections from new shareholders.

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