Finance

Moody's Upgrades Credit Rating Outlook for CRRH-WAEMU

Moody's Upgrades Credit Rating Outlook for CRRH-WAEMU
Thursday, 24 October 2024 19:48

The international agency explains this rating by the improvements in the economic environment in WAEMU, even though political tensions continue in Niger, Mali, and Burkina Faso.

Yesterday, Moody's announced it has upgraded the outlook for CRRH-WAEMU, the Regional Mortgage Refinancing Fund, from "negative" to "stable." The rating agency has also confirmed the institution's long-term local currency rating at Ba2 and foreign currency rating at Ba3. This makes CRRH-WAEMU one of the highest-rated financial institutions in the union.

Moody's attributed these changes to the notable improvement in the economic environment within WAEMU and the increasingly resilient credit profile of the West African Development Bank (BOAD), which holds a 24% stake in CRRH-WAEMU. The bank's rating was confirmed at Baa1, reflecting its financial strength.

The agency noted that its concerns about the operational environment in the broader WAEMU region, where CRRH-WAEMU operates, have eased. This shift is linked to the lifting of sanctions on Niger in February 2024, which had been imposed after a military takeover. As a result, CRRH-WAEMU has been able to recover its contributions from Nigerien banks. Moreover, the strengthened economic resilience of Côte d'Ivoire and Benin—supported by increasing economic diversification in Côte d'Ivoire and structural reforms in Benin—has further improved the regional bank's rating.

However, challenges remain for the institution. Moody's pointed out that CRRH-WAEMU's focus solely on mortgage refinancing limits its profitability and ability to diversify operations. To address this, it launched a housing loan guarantee program in May 2024, in collaboration with the African Solidarity Fund (FSA), aimed at improving access to financing for sector players. Political instability in Burkina Faso, Mali, and Niger, as well as their plans to leave the Economic Community of West African States (ECOWAS), could further escalate regional tensions.

CRRH-WAEMU is committed to enhancing its credit ratings to bolster its reputation among international investors, including those within WAEMU. The goal is to offer its shareholder banks competitive refinancing terms for housing loans.

On the same topic
WAEMU states collectively raised nearly 7,000 billion CFA francs in the first half of 2025, a record amount driven by increased financing needs, the...
• Inflation within the West African Economic and Monetary Union (UEMOA) fell to a two-year low of 0.6% in May, bolstered by a decline in food costs. •...
• Interbank volumes rose 18.7% in May, while rates declined across the market• The BCEAO cut its main policy rate to 3.25% following a sharp drop in...
• EY is preparing to leave Francophone Sub-Saharan Africa by 2026• The exit could unlock $500 million to $1 billion in annual market...
Most Read
01

• Global coffee consumption projected to hit a record 169.4 million 60-kg bags in 2025/2026, up from...

Coffee: Global Consumption Expected to Reach Record Level in 2025/2026
02

• Algeria grants commercial 5G licenses to top three telecom operators: Mobilis, Djezzy, and Ooredoo...

Algeria Awards Commercial 5G Licenses
03

• Investors seem to keep focusing on yields, which are high for the moment• New Leadership might see...

Afreximbank Bonds Retain Market Confidence Despite Moody’s Downgrade
04

• Kenyan President William Ruto signs strategic partnership with UK Prime Minister Keir Starmer to b...

William Ruto in London: New Agreement Aims to Double Kenya-UK Trade by 2030
05

• IFC teams up with AfDB and Nigeria’s EbonyLife to assess a new fund for African cinema• Sector cou...

IFC Plans Investment Fund to Help Grow African Film Industry
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.