Moody’s Investor’s Service has upgraded infrastructure solutions provider Africa Finance Corporation’s (AFC) credit rating from “Negative” to “Stable.”
- The ratings agency also affirmed “the Corporation’s long-term issuer and senior unsecured ratings at A3, as well as AFC’s short-term issuer rating at P-2.”
- AFC is currently engaged in multiple projects including Djibouti’s first wind farm, the Lobito Corridor rail project, and other signature projects across the continent.
- AFC exceeded its US$ 1 billion target in 2019-2023, and plans to raise a similar amount between 2024-2028.
“Notwithstanding increased country risk in several of AFC’s countries of operation over the past year, asset performance has proven resilient amid effective credit protections,” Moody’s analysts stated in its latest report. “The stable outlook also reflects management’s governance track record and early intervention capacity to mitigate materializing risks at an early stage.”
The pan-African multilateral development financial institution, established in 2007, focuses solely on fixing the continent’s infrastructure challenges. It has invested in projects across the continent. The ratings upgrade came just a day after AFC signed a deal with Angola and Zambia for the Lobito corridor rail line, and the US provided the first US$2mn for an environmental and social study for the project.
“Amidst the current challenging global macroeconomic and financial conditions, we are pleased to receive such strong endorsement from Moody’s, a key lever in our access to global capital markets,” Samaila Zubairu, President and CEO of AFC said.
