Fitch Affirms Bank of Africa at ‘BB’ with Stable Outlook
By Praisebell Rosemond Larbi
Ratings agency Fitch has affirmed Bank of Africa’s (BOA) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at ‘BB’, maintaining a Stable Outlook on the bank.
Fitch also affirmed BOA’s Government Support Rating (GSR) at ‘bb’ and its Viability Rating (VR) at ‘bb-’, reflecting a balance between the bank’s strong franchise and diversification benefits, and the risks associated with its broad pan-African footprint.
According to the UK-based ratings agency, BOA’s IDRs are primarily driven by expectations of potential support from the Moroccan authorities, as captured in the bank’s Government Support Rating. The Stable Outlook mirrors the outlook on Morocco’s sovereign ratings, underscoring the close link between the bank’s credit profile and that of the sovereign.
In its assessment, Fitch highlighted BOA’s solid franchise in Morocco, where it holds domestic systemically important bank (D-SIB) status with an estimated market share of about 14 per cent. The agency noted that the bank’s strong position in its home market provides a stable earnings base and underpins its overall creditworthiness.
Fitch also pointed to BOA’s extensive pan-African presence as a key feature of its business model. The group operates in 32 countries, largely across Africa, and operations outside Morocco contribute roughly half of the group’s net income. This geographic diversification, the agency said, provides business resilience and reduces reliance on a single market, even as it introduces additional risks.
The bank’s Viability Rating reflects what Fitch described as healthy financial performance, as well as sound funding and liquidity positions. These strengths, however, are balanced by capitalisation and asset quality metrics that remain weaker than some peers, although both are showing signs of gradual improvement.
“BOA’s VR considers its solid franchise in Morocco and its pan-African presence, which brings diversification benefits to the business model,” Fitch said, adding that improving capital ratios and asset quality are supporting the bank’s standalone credit profile. The agency noted that BOA’s National Rating reflects its relative creditworthiness compared with other issuers in the Moroccan market.
On risk, Fitch assessed BOA’s risk profile as higher than that of domestically focused peers, largely due to its significant exposure to higher-risk markets outside Morocco. However, the agency said these risks are being mitigated by strengthened risk controls across the group, cautious growth strategies, and ongoing efforts to clean up the balance sheet.
Fitch highlighted initiatives to reduce legacy problem exposures and reinforce asset quality as positive steps that are gradually improving the bank’s overall risk profile.
The affirmation of the ratings and Stable Outlook signals Fitch’s expectation that BOA will continue to balance growth across Africa with prudent risk management, while benefiting from its strong franchise at home and potential sovereign support from Morocco.
