The African Export-Import Bank (Afreximbank) has formally terminated its credit standing relationship with Fitch Rankings, one of many world’s main score companies.
This was communicated in a press release by the Pan-African bank on Friday, escalating a long-brewing disagreement over how Fitch evaluates its creditworthiness.
The bank says the company’s evaluation now not aligns with its institution treaty, mission, or mandate.
This brings to mild deeper tensions between African multilateral lenders and international score corporations.
What they’re saying
Afreximbank said that the choice was primarily based on a elementary disconnect between Fitch’s analysis framework and the bank’s authorized and operational construction.
- “Afreximbank has in the present day formally terminated its credit standing relationship with Fitch Rankings. This determination follows a evaluation of the connection, and its agency perception that the credit standing train now not displays understanding of the Bank’s Institution Settlement, its mission and its mandate,” the Bank said.
- Fitch Rankings had but to touch upon the event as of the time of publication.
- Sources aware of the matter mentioned the downgrade by Fitch had led to elevated borrowing prices for Afreximbank within the worldwide markets, elevating its rates of interest and complicating entry to reasonably priced capital.
The bank maintains that its monetary construction and authorized protections are being mischaracterised by Fitch’s present score mannequin
Flashback
The fallout stems from Fitch’s June 2025 determination to downgrade Afreximbank’s long-term credit standing from BBB to BBB-, with a unfavourable outlook — a transfer the bank contested strongly.
The company had cited considerations about Afreximbank’s sovereign mortgage exposures and asset high quality, notably as a number of African governments confronted debt restructuring.
- Fitch’s downgrade was primarily based on elevated publicity to sovereign debtors like Ghana, South Sudan, and Zambia, all of which had been present process or susceptible to debt restructuring.
- Fitch and the bank disagreed over how one can classify non-performing loans (NPLs), with Fitch estimating NPLs at 7.1%, whereas Afreximbank reported 2.3%.
- The company raised considerations over transparency and the appliance of IFRS 9 accounting requirements.
- Fitch argued that Afreximbank’s participation in sovereign restructurings might weaken its most popular creditor standing — a key think about multilateral bank danger evaluation.
Afreximbank firmly denied any involvement in sovereign restructurings, citing its treaty protections. It additionally defended its monetary reporting, stating that its classifications are IFRS 9-compliant and supported by exterior audits.
The episode got here as African establishments started pushing for better management over their credit score narratives.
Just a few months later, the African Credit score Ranking Company (AfCRA) — backed by the African Union — introduced plans to start issuing rankings by late 2025 or early 2026. The company goals to present a homegrown various to Fitch, Moody’s, and S&P.
In June 2025, Group Chief Economist and Managing Director of Analysis and Commerce Intelligence at Afreximbank, Dr Yemi Kale, famous that flawed and externally-biased credit standing fashions are pushing up the price of borrowing for African international locations, regardless of their enhancing macroeconomic outlook.
In accordance with Kale, worldwide credit standing companies proceed to evaluate African economies utilizing one-size-fits-all fashions that don’t replicate the construction, dangers, or coverage frameworks inside the continent.
What it is best to know
Afreximbank’s transfer is uncommon within the international rankings market as a result of it represents a uncommon, issuer-led termination of a significant credit standing relationship following a downgrade — and in full public view.
- Most adjustments to score protection are both initiated by the score company or accomplished quietly by the issuer as a part of routine portfolio administration.
- In distinction, Afreximbank’s determination adopted a public dispute with Fitch over methodology, authorized interpretation, and danger evaluation — making it a market-facing occasion.
- Regardless of severing ties, the influence of Fitch’s downgrade stays, as Traders proceed to reference its evaluation when pricing Afreximbank bonds.
- With Fitch out, extra weight will now fall on Moody’s and S&P’s evaluations, intensifying scrutiny on the bank’s sovereign publicity, asset high quality, and reporting requirements.
- The event additionally displays a broader shift in how multilateral African banks are handled by score companies — more and more like industrial lenders, not policy-driven establishments.
Afreximbank stays financially sound and strategically vital, however the episode could have narrowed its margin for error in international credit score markets.
Observe: This story has been up to date to replicate new data
