Afreximbank Ends Relationship with Fitch Ratings Amid Credit Rating Dispute
The African Export-Import Bank (Afreximbank), the continent’s leading multilateral trade finance institution, announced on Friday the termination of its engagement with Fitch Ratings, signaling increasing tensions between African financial institutions and Western credit agencies.
Afreximbank said the decision followed a comprehensive review and reflected a “firm belief” that Fitch’s assessments no longer captured the bank’s distinct legal structure and operational mandate.
The announcement comes months after Fitch downgraded Afreximbank’s credit rating to a single notch above “junk” status, maintaining a negative outlook—an action that could considerably raise the bank’s borrowing costs.
“The credit rating exercise no longer reflects a good understanding of the Bank’s Establishment Agreement, its mission, and its mandate,” Afreximbank stated from its Cairo headquarters.
The move marks a rare public repudiation of the traditional gatekeepers of global capital markets. While credit ratings remain critical for institutions seeking funding from international investors, African policymakers have long criticized Western agencies for a limited understanding of the continent’s economic realities and the specific legal safeguards for multilateral lenders.
Afreximbank reassured stakeholders that its “business profile remains robust,” citing the legal protections embedded in its founding agreement, which has been ratified by its member states.
Established over 30 years ago to promote African trade, Afreximbank has grown into a central pillar of the continent’s financial architecture. Its recent initiatives include the launch of the Pan-African Payment and Settlement System and the creation of a $10 billion fund to support the African Continental Free Trade Agreement (AfCFTA).
As of late 2024, the bank reported total assets exceeding $40 billion. Despite severing ties with Fitch, Afreximbank continues to hold investment-grade ratings from other global agencies, including Moody’s Investors Service, GCR, and the Japan Credit Rating Agency.
