Rwanda Development Bank (BRD) has been rated A+ by the Association of African Development Finance Institutions (AADFI).
The bank was rated during the annual forum of African Development held in DRC, where the bank was also ranked third among best development banks in Africa.
AADFI brings together 73 financial institutions, including 61 national institutions and 12 regional ones.
A+ rating means an institution has an exceptional financial condition, little or no nonperforming assets, and is highly capitalised with strong earnings. The grade is the highest level of financial soundness.
The ratings and rankings are assessed following the institute’s governance, its financial and prudential standards and operational standards.
BRD’s Chief Executive Officer, Jack Kayonga, explained that the final rating of this year’s review varied from the highest rating of 92.6 percent to the lowest of 32.3, and BRD scored 88.2 percent.
The review ranked the bank third after Egypt’s African Export and Import Bank and IBILE Holdings Ltd of Nigeria.
The previous year, BRD was ranked 13th scoring 75 percent. Kayonga said that the bank still has some areas of concern that they did not meet to be ranked first, however, saying they are working on clearing those areas of weakness.
“The bank being rated A+ and ranked third in Africa it’s very instrumental which will reduce the lender’s borrowing costs and the position will gain us trust from other banks,” Kayonga explained.
He noted that the new position would be instrumental in easing BRD’s access to credit facilities from bigger financial institutions.