JCR: affirms Afreximbank’s long-term issuer rating at -A
African Export-Import Bank (Afreximbank) has announced that Japan Credit Rating Agency (JCR) has affirmed its long-term issuer rating of A- and maintained the “Stable” outlook.
The affirmation of Afreximbank’s issuer rating is testament of the Bank’s ever strengthening credit profile and positions to continue to expand and escalate its interventions in Africa, in whose long-term economic development it plays a pivotal role.
JCR Rating Agency noted, in its assessment, the strategic role that Afreximbank’s current Sixth Strategic Plan (2022-2026) plays towards the Bank’s fulfilment and deliverance of its mandate, as well as its crucial work in support of initiatives aligned with the goals of the African Union (AU).
Moreover, JCR identified strong shareholder support for Afreximbank’s operations, citing as evidence the healthy progression of capital increases since 2014 as well as the African Union supported US$6.5 billion General Capital Increase (GCI) approved by the Bank’s Board of Directors in June 2021.
The credit rating agency further contended that the Bank’s solid earnings capacity would protect its financial base even if the economic impact of the Ukraine crisis worsens.
Mr. Denys Denya, Afreximbank’s Executive Vice President in charge of Finance, Administration and Banking Services,commented:
“The affirmation of Afreximbank’s A- rating, as well as JCR’s evident confidence in the Bank’s ability to deliver for its shareholders and defend its balance sheet in the long-term, represent important validations of our ongoing strategy and the Bank’s record of never incurring annual losses, Equipped with such a strong credit rating, Afreximbank can provide assurance to investors who support the Bank’s fundraising activities and attract funding at competitive terms.”
