Fitch Ratings Affirms Afreximbank’s Ratings at 'BBB' with Stable Outlook

The agency also affirmed the Bank’s Short-Term IDR at ‘F2’ and the long-term ratings on the Bank’s Global Medium Term Note Programme and Debt Issuances at ‘BBB’.

Fitch Ratings has affirmed the Long-Term Issuer Default Rating (IDR) for African Export-Import Bank (Afreximbank) at ‘BBB’, maintaining a Stable Outlook. The agency also affirmed the Bank’s Short-Term IDR at ‘F2’ and the long-term ratings on the Bank’s Global Medium Term Note Programme and Debt Issuances at ‘BBB’.

The affirmation reflects Afreximbank’s strong profile and its growing systemic importance to the African continent, underscored by key mandates from the African Union (AU), including the COVID-19 health response and support for grain and fertilizer access amidst the Russia-Ukraine conflict.

Fitch highlighted Afreximbank’s robust capitalisation and liquidity position, benefiting from excellent internal capital generation and ongoing shareholder support through the AU-initiated General Capital Increase (GCI) under the Bank’s Strategic Plan (Plan VI). The Bank has mobilized US$2.1 billion in paid-in equity since the GCI launch in August 2021, aiming for a total of US$2.6 billion.

Afreximbank’s strong liquidity profile is marked by 53% of its treasury assets rated ‘AA’ to ‘AAA’, well above the 40% ‘strong’ threshold. The Bank also maintains access to capital markets and alternative liquidity sources even in challenging times.

Fitch noted Afreximbank’s effective risk management, with a low concentration risk and a high degree of loan collateralisation. In 2023, 85% of total loans were collateralised, including provisions, with 20% covered by cash collaterals and 8% by credit insurance from 'A' to 'AA'-rated insurers. Despite the high-risk environment, the Bank’s non-performing loan ratio remains relatively low due to prudent risk management policies.

Denys Denya, Afreximbank Group Senior Executive Vice President, welcomed the rating, stating that Fitch’s standalone rating of “a-” for the Bank, before accounting for the operating environment, underscores its systemic relevance to Africa and robust financial performance. He emphasized the Bank's pivotal role in facilitating trade and investment across its Member States and its integral part in achieving the AU’s strategic economic programs, including the African Continental Free Trade Agreement (AfCFTA).

Mr. Denya further noted Afreximbank’s continued support to Member States in mitigating economic challenges, such as the 2015 commodity price crisis, the COVID-19 pandemic, the Ukraine-Russia conflict, and the ongoing African debt crisis. The Bank appreciates the AU and its member countries for their support in capital and deposit mobilization efforts.