Moody's upgrades ALCB Fund's rating to Baa1 from Baa2; maintains stable outlook

Paris, May 19, 2023 -- Moody's Investors Service (Moody's) has today upgraded the African Local Currency Bond Fund S.A. SICAV-RAIF's (ALCB Fund) long-term foreign-currency issuer rating to Baa1 from Baa2. The outlook remains stable. The main driver of today's action is the improvement in the Fund's capital structure following its relocation to Luxembourg from Mauritius, which took place in April 2023.

The stable outlook reflects Moody's expectation that after the one-off improvement in leverage, the Fund's credit profile will remain stable. ALCB Fund continues to establish a track record of operations and managing a portfolio of private sector bonds invested in Africa through difficult times. However, its operating environment is increasingly challenging. Meanwhile, its funding sources will likely remain predominantly reliant on historical funding sources despite plans for further diversification.

Written by
Brock Hoback
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