The Africa Finance Corporation (AFC), one of the leading investment grade rated multilateral development finance institution and project developer, has been awarded an A3/P-2 , investment grade credit rating with a stable outlook by international ratings agency, Moody’s for a third consecutive year.
According to Moody’s, the rating was assigned to AFC because of its “sound capital adequacy, high liquidity, no non-performing loans and only a small impairment provision on its balance sheet.”
The rating, according to a statement, took into account AFC’s inevitable expansion over the next few years and also accounts for the natural risks of exposure to economic and political challenges which may impact the rating.
However Moody’s also highlighted that AFC’s profitability metrics were high compared to those of its peers, providing substantial return on investment for its stakeholders.
The CEO of AFC, Andrew Alli, while commenting on the rating said: “This last year, characterised by the global economic slowdown and weak commodities markets, has not been an easy one. AFC has done particularly well to retain its strong credit rating and maintain its status as one of the highest investment grade-rated multilateral financial institutions in Africa.
“This rating vindicates the quality of AFC’s work, the diversity of our asset portfolio and our ability to deliver a sound return to our investors. It will enable us to continue proactively financing and developing the infrastructure required to drive Africa’s economic development and improve the lives of the people living on the continent.”