Afreximbank Terminates Credit Rating Relationship with Fitch

The African Export-Import Bank (Afreximbank) yesterday officially terminated its credit rating relationship with Fitch Ratings.

A statement from the multilateral financial institution explained that the decision followed a review of the relationship, and its firm belief that the credit rating exercise no longer reflects a good understanding of the bank’s Establishment Agreement, its mission and its mandate.

It added, “Afreximbank’s business profile remains robust, underpinned by strong shareholder relationships and the legal protections embedded in its Establishment Agreement, signed and ratified by its member states.”

Fitch had last year downgraded the bank’s Long-Term Issuer Default Rating (IDR) to ‘BBB-’ from ‘BBB’ with a negative outlook. It had cited concerns that sovereign debt restructuring by some countries such as Ghana, South Sudan and Zambia, may include Afreximbank exposures, undermining its policy role and increasing strategic risk. But the bank had faulted the premise of the rating.

Afreximbank is a Pan-African multilateral financial institution mandated to finance and promote intra- and extra-African trade. For over 30 years, the bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialisation and intra-regional trade, thereby boosting economic expansion in Africa.

A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA.

Working with the AfCFTA Secretariat and the AU, the bank has set up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2024, Afreximbank’s total assets and contingencies stood at over US$40.1 billion, and its shareholder funds amounted to US$7.2 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa2), China Chengxin International Credit Rating Co., Ltd (CCXI) (AAA), and Japan Credit Rating Agency (JCR) (A-).