Fitch Scores has downgraded Afreximbank’s long-term credit standing from BBB- to BB+, successfully pushing the African multilateral lender into junk standing.
The downgrade and subsequent ranking withdrawal, introduced on January 23, 2026, adopted a dispute between Fitch and the bank over the company’s evaluation of Afreximbank’s threat publicity and credit score administration practices.
The transfer displays rising concern over the bank’s publicity to debt-distressed African nations, significantly Ghana, the place a current mortgage restructuring triggered fears of economic losses.
African Export-Import Bank (Afreximbank) formally terminated its credit standing relationship with Fitch Scores, one of many world’s main ranking businesses.
What they’re saying
Fitch’s downgrade positioned Afreximbank in speculative-grade territory, sparking a pointy rebuttal from the bank over the rationale behind the transfer.
The company additionally downgraded the short-term IDR to ‘B’ from ‘F3’, reflecting weaker short-term credit score energy.
As well as, the bank’s medium-term notice program and debt issuance have been downgraded to BB+ from BBB earlier than Fitch later withdrew Afreximbank’s scores solely.
- “The downgrade displays heightened dangers stemming from Afreximbank’s sovereign publicity, significantly following Ghana’s debt restructuring, which we consider raises questions concerning the bank’s credit score protections,” Fitch acknowledged in its launch.
- “Our issues concentrate on whether or not Afreximbank can preserve its most well-liked creditor standing within the face of such restructurings, which can weaken its coverage relevance,” the company added.
- In response, Afreximbank stated: “Fitch has chosen to disregard our distinctive authorized standing as a multilateral monetary establishment established by treaty. Its evaluation misrepresents each our mission and mandate.”
- The bank additional acknowledged: “We’ve taken the choice to sever our relationship with Fitch Scores, whose strategy we discover to be inconsistent with the operational realities of growth finance in Africa.”
The conflicting views underscore the stress between conventional ranking fashions and the operational realities of multilateral growth banks in rising markets.
Backstory
The street to downgrade started in June 2025 when Fitch lowered Afreximbank’s ranking from BBB to BBB- and positioned it on a detrimental outlook as a consequence of rising issues over its sovereign mortgage guide.
- Fitch highlighted dangers related to lending to nations like Ghana, Zambia, and South Sudan.
- Afreximbank insisted its operations are ruled by a treaty with 53 African nations, giving its loans quasi-sovereign safety.
- The African Peer Assessment Mechanism supported Afreximbank’s stance, criticizing Fitch for ignoring authorized safeguards.
- The scenario worsened after Ghana restructured its mortgage, a transfer that Fitch noticed as undermining the bank’s coverage function.
These mounting tensions laid the groundwork for Fitch’s last resolution to downgrade and exit.
What it is best to know
The downgrade to junk standing and ranking withdrawal marks a serious growth for Afreximbank, leaving solely Moody’s among the many main businesses nonetheless assessing the establishment.
- Fitch withdrew its scores on January 23, 2026, after reducing Afreximbank’s long-term IDR to BB+.
- Ghana’s mortgage restructuring was a key set off, suggesting Afreximbank could have incurred losses.
- The downgrade additionally affected the bank’s short-term scores and debt applications.
- Afreximbank rejected the evaluation, saying Fitch misunderstood its mandate and misrepresented its credit score energy.
The event may form investor sentiment and financing phrases for Afreximbank within the close to future.
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