Nevertheless, BADEA's capitalization and liquidity remains extremely strong, providing large buffers against potential shocks. The positive outlook reflects our expectation that, over the next two years, there is a greater than one-in-three likelihood BADEA will continue expanding its lending footprint in SSA through year-on-year increases in disbursements, backed by broad-based shareholder support, which could lead to a stronger role and greater policy importance. We could revise the outlook to stable if we observe signs of a weakening role and public policy mandate, for instance, due to a sustained slowdown in lending. We could also lower the ratings if the bank's preferred creditor treatment (PCT) weakens. This could stem from greater financial risk related to the less creditworthy sovereigns to which
