CRRH-UEMOA, WAEMU’s best-rated institution by Moody's, after BOAD and AfDB

Banking

Monday, 22 February 2021 12:44

CRRH-UEMOA, WAEMU’s best-rated institution by Moody's, after BOAD and AfDB

(Togo First) - The Caisse Regionale de Refinancement Hypothecaire (CRRH-UEMOA), based in Lome, becomes the third best-rated financial institution by Moody's in the West Africa Economic and Monetary Union (WAEMU). The other institutions are the West African Development Bank ( BOAD) and the African Development Bank (AfDB).

Indeed, Moody's Investors Service ("Moody's") assigned the following first-time ratings to CRRH-UEMOA in 2020: Ba2 long-term corporate family rating (CFR), Ba2/Not Prime long and short-term local currency (LC) issuer ratings, as well as Ba3/Not Prime long and short-term foreign currency (FC) issuer ratings.

Moody's explains the CRRH-UEMOA ratings by the strong asset quality underpinned by conservative structuring of its lending, and its solid levels of capitalization with a TCE (tangible common equity) to tangible managed assets ratio (excluding subordinated debt) which stood at 7.6% as of December 2019 (7.0% as of December 2018).

With an assessment that places it in the "Non-investment grade speculative" category, the CRRH-UEMOA still has a way to go to reach the top of Moody's rating system (Prime or High-Grade Categories, from Aa3 to Aaa). It nevertheless has one of the best grades in the sub-region, with, for example, “only” 4 ratings below from the BOAD’s Baa1.

The institution wants to position itself with this grade as "one of the best institutions in the Area," especially since Moody's rating allows it to be viewed as "the best issuer rated in WAEMU after BOAD (Baa1-) and AfDB (AAA) .” The AfDB is by far one of the best-rated entities on the continent.

Ayi Renaud Dossavi

REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

TRADING ACROSS BORDERS (more info)

In comparison to previous years,Togo has significantly improved its ranking under the“Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.

In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

After moving from the 133rd to 127th place under the 2020 Doing Business’ construction permit index, Togo intends to reiterate this feat in the coming edition of the global ranking. To this end, it has introduced this year multiple reforms.

GETTING ELECTRICITY (more info)

Over the past two years, Togo’s ranking under the Doing Business’ Getting electricity and water indicator has increased consistently. Owing this performance to multiple reforms aimed at making it easier for businesses to access power and water, Lomé plans to introduce even more reforms this year to keep up its improvements.

REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.