"Fitch affirms Afreximbank\u2019s rating at \u2018BBB\u2019, outlook stable"

" Fitch affirms Afreximbank\u2019s rating at \u2018BBB\u2019, outlook stable \r\nThe global rating agency,\u00a0Fitch Ratings, has affirmed the African Export-Import Bank\u2019s (Afreximbank) Long-Term Issuer Default Rating (IDR) at \u2018BBB\u2019, with a stable outlook.\r\n\r\nFitch also affirmed Afreximbank\u2019s Short-Term Issuer Default Rating at \u2018F2\u2019 and the Long-Term ratings on the bank\u2019s Global Medium Term Note Programme and Debt Issuances at \u2018BBB\u2019.\r\n\r\nThe rating affirmation is a strong testament of the bank\u2019s systemic relevance to Africa and captures the increasing number of the key mandates given to the bank by the African Union (AU), such as the implementation of the health response to the\u00a0COVID-19 pandemic and the support for access to grains and fertilizers in the context of the Russia-Ukraine conflict.\r\n\r\nFitch acknowledged Afreximbank\u2019s strong capital and liquidity position. In addition to the \u2018excellent\u2019 internal capital generation, the bank had raised US$1.4 billion paid-in capital, as of 2022, out of the planned raise of US$2.6 billion by 2026. The agency noted that Afreximbank had a strong liquidity profile, as its share of treasury assets rated \u2018AA\u2019 to \u2018AAA\u2019 remained above the \u2018strong\u2019 threshold of 40 per cent. It added that the Bank\u2019s liquidity profile was further enhanced by its access to capital markets and other alternative liquidity sources even during challenging times.\r\n\r\nThe bank has continuously demonstrated its ability to de-risk its lending portfolio, noted Fitch. With a low concentration risk, coupled with a high collateralisation of the loan book, where 25% of the loan book was cash collateralised and eight per cent was credit insured from \u2018A\u2019 to \u2018AA\u2019 rated insurers, \u201cthe \u2018moderate\u2019 risk management policies primarily reflect the use of credit risk mitigants that have helped maintain a relatively low non-performing loan ratio, despite the high-risk environment that the bank operates in.\u201d\r\n\r\nCommenting on the development,\u00a0Prof Benedict Oramah, president and chairman of the board of directors of Afreximbank, said that Fitch\u2019s affirmation is a strong testament to the bank\u2019s strong developmental mandate and its increasing countercyclical role in helping its member countries during challenging times.\r\n\r\nThe bank has continued to contribute and define the path for Africa\u2019s economic future through the creation of programmes and initiatives that support the emergence of integrated and well diversified African economy that adapts and responds to global shocks.\r\n\r\n\u201cThe Bank\u2019s consistent and prudent response to member countries\u2019 needs during challenging times and its ability to manage exposures prudently have led to its recognition by member countries as a systemic institution as evidenced by its accreditation by the AU and its selection by the AU as a preferred partner in implementing some AU strategic initiatives,\u201d the president said.\r\n \r\n "

"Fitch affirms Afreximbank\u2019s rating at \u2018BBB\u2019, outlook stable"

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