African Export-Import Bank has performed down Fitch Scores’ resolution to downgrade its long-term issuer credit standing to sub-investment grade, insisting that its monetary place stays strong and that it’s going to proceed to help African governments and personal sector improvement throughout the continent.
The bank’s president, George Elombi, mentioned the downgrade doesn’t alter Afreximbank’s coverage relevance or its capacity to fund strategic priorities in member international locations.
He spoke on the sidelines of the signing of an $11 billion help package deal for South Africa, reaffirming the lender’s dedication to capital mobilisation and long-term funding in Africa’s productive sectors.
Fitch final month minimize Afreximbank’s ranking to BB+ from BBB-, citing a reassessment of the bank’s policy-importance threat to “medium” from “low.”
The company pointed to exposures linked to sovereign debt restructurings, together with losses related to a $750 million facility linked to Ghana’s debt rework.
Elombi rejected issues that the downgrade displays underlying weak point, saying the bank’s treasury place stays strong. In line with him, Afreximbank’s monetary energy continues to be recognised even inside the rankings trade, regardless of disagreements over how sovereign-related dangers are assessed.
The downgrade has additionally intensified a rift between the lender and Fitch. Afreximbank confirmed that it ended its relationship with the ranking company on January 23 after months of dispute over the remedy of credit score dangers tied to African sovereign debt restructurings.
The bank has argued that its mandate and working mannequin require a distinct threat framework from that utilized to industrial lenders.
Market response to the downgrade was swift, with Afreximbank’s bonds coming below stress following the announcement. Nevertheless, the lender has signalled that rankings actions is not going to derail its strategic course or capital-raising plans.
Elombi mentioned Afreximbank’s focus stays on deploying capital into Africa’s personal and industrial sectors to drive worth creation.
He emphasised that long-term wealth era inside the continent is central to decreasing reliance on exterior financing and insulating African economies from international shocks.
Based to advertise intra-African commerce and financial improvement, Afreximbank has change into a key supply of financing for governments, monetary establishments, and corporates, notably during times of market stress.
Its position has expanded in recent times as a number of African international locations navigate debt restructuring, forex pressures, and constrained entry to worldwide capital markets.
Regardless of the downgrade, Afreximbank mentioned it is going to proceed to interact traders and companions, sustaining that its stability sheet energy, capital base, and improvement mandate place it to stay a crucial financier for Africa’s development agenda.