The African Solidarity Fund (FSA), a multilateral financial institution, is rated AA + by WARA. The perspective attached to this notation is stable.Dakar, the 02 / 02 / 2018 – West Africa Rating Agency (WARA) today announced the publication of the first rating of the African Solidarity Fund (ASF).
On WARA’s regional scale, the long-term rating of the FSA is “AA +”, in investment grade, and its short-term rating is “w-2”. This counterparty rating is the combination of an intrinsic rating of “A” and 4 external support scores, which WARA adds as a result of the Fund’s sovereign ownership and status as a multilateral development financial institution. The perspective attached to these ratings is stable.
At the same time, on its international scale, WARA assigns to the FSA the notation of: iBB + / Stable / iw-5.
WARA justifies the intrinsic rating of the FSA (“A”) by the robustness of its capitalization, despite a difficult process of releasing called capital, and the very high liquidity of its assets, in the face of a non-existent debt. The FSA also benefits from the good geographic and sector diversification of its portfolio of commitments.
The Fund’s governance is sound, its management sound and its controls meticulous, which considerably limits the risks of an operational nature. In addition, the strategic positioning of the institution is judicious, in that it indirectly responds to the high financing needs of SMEs, in a market where very few players are active and where the strategic objectives of the FSA appear to be quite different. clear, relevant and realistic.
