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Fitch downgrades Afreximbank, cites Ghana debt concerns, then withdraws ratings
['Obinna Ezugwu']
Business Hallmark
Fitch Ratings has downgraded the African Export-Import Bank (Afreximbank) amid concerns over its exposure to Ghana’s sovereign debt and subsequently withdrew the bank’s ratings.
The global credit rating agency lowered Afreximbank’s Long-Term Issuer Default Rating (IDR) to ‘BB+’ from ‘BBB-’ and its Short-Term IDR to ‘B’ from ‘F3’.
The ratings on the bank’s global medium-term note programme and other debt instruments were similarly cut to ‘BB+’ from ‘BBB-’.
A BB+ rating is considered non-investment grade, commonly referred to as “high-yield” or “junk,” signalling higher perceived risk for investors.
According to Fitch, Afreximbank’s solvency remains supported by strong capitalisation, a moderate usable capital-to-risk-weighted-assets ratio of 21 per cent at end-2024, and excellent internal capital generation.