The African Export-Import {Bank} (Afreximbank) has challenged Fitch Rankings’ current choice to revise its outlook on the establishment to detrimental, asserting that its {financial} place stays strong and its authorized framework shields it from the dangers cited by the ranking company.
In a press release on Tuesday, the {bank} stated it complies totally with Worldwide {Financial} Reporting Requirements, together with IFRS 9, which guides the classification of mortgage efficiency.
These practices, it famous, are detailed in its 2024 {financial} statements and supported by an exterior audit.
Fitch, in a 4 June report, cited considerations that debt owed to the {bank} by some African governments might be topic to restructuring, prompting the revised outlook. The company additionally stated its definition of non-performing loans (NPLs) differs from Afreximbank’s, which “makes use of forward-looking data.”
The {bank} rejected options that it might be concerned in debt restructuring processes.
“To take action could be inconsistent with the {Bank} institution treaty,” it stated. “The therapy of its loans and different actions is ruled by the treaty and never by classifications created exterior its framework.”
Afreximbank was established by means of a treaty signed by 53 African states. It argued that this authorized basis gives binding protections and limits its publicity to unilateral modifications in borrower phrases.
Regardless of the outlook revision, Fitch acknowledged the {bank}’s sturdy capital base, describing it as having a “sturdy fairness to belongings and ensures ratio” and “glorious inside capital technology”. It additionally highlighted the “sturdy high quality” of the {bank}’s treasury belongings.
Afreximbank stated these attributes reveal the power of its danger administration and resilience.
The {bank} reaffirmed its dedication to supporting its member international locations by means of {economic} uncertainty whereas persevering with to advertise commerce, growth, and macroeconomic stability throughout the continent.
The African Union launched a brand new Africa-led credit standing company and is about to start operations by the top of September 2025, aiming to supply an alternative choice to the worldwide “large three” businesses, Fitch, Moody’s, and S&P.
PRM challenged Fitch Rankings over its downgrade of the African Export-Import {Bank} (Afreximbank), accusing the agency of a flawed evaluation and a poor understanding of African {financial} establishments.
