The African Export-Import Bank (Afreximbank) has challenged Fitch Ratings’ recent downgrade of Africa’s creditworthiness insisting that its financial position remains robust and its legal framework shields it from the risks cited by the rating agency.
In a statement on Tuesday, the bank affirmed its compliance with International Financial Reporting Standards, including IFRS 9, which guides the classification of loan performance.
Recall that Fitch, had in its recent report, cited concerns that debt owed to the bank by some African governments could be subject to restructuring, leading to a downgrade of the credit rating. The agency also said its definition of non-performing loans (NPLs) differs from Afreximbank’s, which “makes use of forward-looking information.”
Despite the outlook revision, Fitch acknowledged the bank’s strong capital base, describing it as having a “strong equity to assets and guarantees ratio” and “excellent internal capital generation”. It also highlighted the “strong quality” of the bank’s treasury assets.
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Afreximbank said these attributes demonstrate the strength of its risk management and resilience. In addition, the bank reaffirmed its commitment to supporting its member countries through economic uncertainty while continuing to promote trade, development, and macroeconomic stability across the continent.
The credit rating dispute is coming at a time African countries are finalising the process of creating an indigenous rating agency aiming to offer an alternative to the global “big three” agencies, Fitch, Moody’s, and S&P.
