Global credit ratings agency Fitch Ratings has affirmed the Long-Term Foreign- and Local-Currency Issuer Default Ratings of Bank of Africa at ‘BB’, maintaining a Stable Outlook.
The agency also affirmed the bank’s Government Support Rating at ‘bb’ and its Viability Rating at ‘bb-’, underscoring sustained confidence in the institution’s long-term stability despite operating in a diverse and often challenging African banking landscape.
According to Fitch, the affirmation reflects Bank of Africa’s resilient business model, its strategic importance within the Moroccan financial system, and the potential for sovereign support should the need arise.
The Stable Outlook aligns with that of the sovereign ratings, highlighting the close linkage between the bank’s credit profile and that of Morocco.
Sovereign Support Remains a Key Rating Driver
Fitch noted that Bank of Africa’s ratings continue to be driven largely by the expectation of support from Moroccan authorities. This support is captured in the bank’s Government Support Rating, which reflects its systemic relevance and the authorities’ track record of backing key financial institutions.
As one of Morocco’s domestically systemically important banks, Bank of Africa plays a crucial role in financial intermediation, trade finance, and regional banking integration. Fitch’s assessment suggests that this importance strengthens the likelihood of state intervention in times of stress, providing a stabilizing anchor for the bank’s overall credit profile.
Fitch highlighted Bank of Africa’s solid franchise and strong domestic positioning, with a market share of about 14 percent in Morocco. This scale gives the bank competitive advantages in retail banking, corporate lending, and treasury operations.
The bank’s entrenched presence in the Moroccan financial system has allowed it to generate consistent earnings and maintain customer confidence, even during periods of economic uncertainty. Fitch emphasized that this strong home market base remains a critical buffer against risks arising from its international operations.
Pan-African Footprint Drives Diversification
Beyond its domestic strength, Fitch pointed to Bank of Africa’s extensive pan-African presence as a major positive factor. The group operates across 32 countries, mostly in Africa, and contributions from outside Morocco account for roughly half of its net income.
This geographic diversification supports revenue stability and reduces reliance on any single market. Fitch noted that the broad footprint enhances the bank’s business model by spreading risk across multiple economies and sectors.
At the same time, it allows Bank of Africa to benefit from growth opportunities in emerging African markets where banking penetration remains relatively low.
Higher Risk Profile Balanced by Strong Controls
Fitch acknowledged that Bank of Africa’s risk profile is higher than that of peers focused primarily on domestic operations. This is due to its significant exposure to higher-risk markets outside Morocco, where economic volatility, currency pressures, and regulatory differences can affect asset quality and earnings.
However, the ratings agency stressed that these risks are being actively managed. Improved risk controls across the group, cautious growth strategies, and enhanced governance frameworks have helped mitigate downside risks.
Fitch also highlighted ongoing efforts to clean up the balance sheet, including the reduction of legacy problem exposures and the strengthening of asset quality metrics.
Performance, Liquidity, and Capital Trends
Fitch described Bank of Africa’s performance as healthy, supported by sound funding and liquidity. The bank benefits from a stable deposit base and access to diversified funding sources, which underpin its resilience during periods of market stress.
While capital ratios and asset quality remain weaker than some peers, Fitch noted that both indicators are on an improving trajectory. Management initiatives aimed at reinforcing capital buffers and tightening credit underwriting standards are beginning to show results. These gradual improvements contribute positively to the bank’s viability assessment and support the Stable Outlook.
The Stable Outlook indicates Fitch’s expectation that Bank of Africa will maintain its current credit profile over the medium term. This assumes continued sovereign support, sustained profitability, and further progress in strengthening capital and asset quality.
In a global environment marked by tighter financial conditions and uneven growth across emerging markets, Fitch’s affirmation sends a strong signal of confidence to investors, counterparties, and customers.
It reinforces Bank of Africa’s standing as a resilient pan-African banking group with solid fundamentals and a clear path toward further balance sheet strengthening.
Overall, Fitch’s latest assessment confirms that Bank of Africa remains well positioned to navigate regional risks while leveraging its strong domestic base and diversified African operations.
The affirmation of the ‘BB’ rating and Stable Outlook reflects a balanced view of strengths and challenges, signaling that the bank’s long-term stability remains intact as it continues to deepen its role in Africa’s financial development.
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