The ECOWAS Bank for Investment and Development (EBID) continues its recovery with an outlook for the B2 rating changed from negative to stable. Moreover, the rating agency, Moody's assumes that EBID will significantly slow the expansion of its loan portfolio.

EBID has just seen the outlook for its long-term B2 rating change from negative to stable on the Moody's scale. In a note published on December 3, 2021, the agency indicates that this improved outlook also reflects the induced effect of the settlement of the arrears of a few major shareholders as part of the development bank's capital increase, the improvement in the bank's liquidity, better risk management and the reduction of EBID's dependence on a narrow range of trade finance, reports the agency. This important change reflects the improvement in the bank's good governance under the leadership of Dr. George Donkor, president of the institution and his staff, who have consolidated the bank's balance sheet. The stable outlook reflects the recent orientation of EBID's business model towards increased lending activities. Moody's also assumes that EBID will significantly slow the expansion of its loan portfolio given the limited near-term prospects for raising significant additional capital to contain the increase in leverage.