Moody’s Affirms the East African Development Bank’s (EADB) Investment Grade Rating .

Kampala, October 23rd, 2024 — Moody’s Rating’s has affirmed the Baa3/Stable rating of the East African Development Bank (EADB). The agency highlighted the Bank’s strong capital position together with an improved non-performing assets (NPAs) ratio (0.8%YE23) and robust liquidity levels were key strengths of its overall credit profile. EADB is one of the few institutions to attain the highly coveted “investment grade” in Africa. The Bank’s leverage was noted to be amongst the lowest amongst its peers. Liquidity was significantly improved following the transfer of cash and term deposits from unrated to highly rated offshore banks. Concentrated credit lines from MDBs continue to provide stable and cheap sources of financing for EADB. The stable outlook reflects a balance of upside and downside risks and notes that loan growth and concentration risk reductions would support a future upgrade. As such, Moody’s expect that EADB will adopt a prudent approach to new lending in the implementation of the new strategy for 2024-2028 and will continue to develop its risk management framework, while maintaining robust capital adequacy and strong liquidity levels.

The Bank’s Director General Vivienne Yeda said, “For over 50 years, the Bank has supported robust growth and transformation. We are pleased that Moody’s has affirmed our investment grade rating which is critical to our resource mobilization efforts, and access to international capital markets . This investment grade rating is beneficial in mobilising cost-effective financing to support both public and private sectors enterprises to create sustainable and inclusive social economic development in East Africa.”