Global credit ratings agency, Moody’s, has affirmed African Export-Import Bank (Afreximbank) long-term credit rating at Baa1, with a stable outlook.
Baa1 is the 8th-highest rating in Moody’s Long-term Corporate Obligation Rating. Obligations rated as Baa1 are subject to moderate credit risk. They are considered medium-grade and as such may possess certain speculative characteristics. Rating one notch higher is A3. Rating one notch lower is Baa2.
Moody’s noted that Afreximbank’s credit profile is supported by its collateralized trade finance business model, with a short average asset maturity and a well-diversified loan portfolio that allows it to respond flexibly to the coronavirus crisis.
Furthermore, the stable outlook is supported by the Bank’s successful equity-raising performance and its track record of adapting its strategy to challenges in the operating environment of member countries without undermining its asset-quality performance.
Afreximbank is a Pan-African multilateral financial institution with the mandate of financing and promoting intra-and extra-African trade. Moody’s determines its rating for supranationals based on three criteria: capital adequacy, liquidity, and funding and strength of member support.
Meanwhile, S&P Global Ratings agency has certified its ‘AAA/A-1+’ long- and short-term issuer credit assessment of the AfDB (African Development Bank) with a stable outlook.