Browsing: Fitch Ratings

• Fitch Ratings ‘negative outlook’ on Afreximbank brings up a debate on how multilateral development finance institutions operating under treaty law should be evaluated.
• Afreximbank’s position is that risk assessments must take into account not just financial data but also the institutional frameworks and legal covenants that define its operations.
• The bank urges a more nuanced understanding of institutions like itself—whose mandates, legal structures, and risk profiles are unlike those of commercial entities.

The African Export-Import Bank (Afreximbank) has come out guns blazing, defending its financial and operational integrity following the June 4^th undertaking by global credit ratings agency Fitch to assign a negative outlook to the institution. At the heart of the matter lies a divergence in the interpretation of risk—particularly concerning sovereign debt—and the legal sanctity of the treaty that underpins Afreximbank’s core business.

Despite Fitch’s concern, Afreximbank maintains it operates under exceptionally high standards of financial transparency …

• The African Peer Review Mechanism (APRM) defends Pan-African Lender, Afreximbank, challenges western risk metrics.
• On 4 June 2025, Fitch Ratings revised the bank’s long-term foreign currency issuer default rating downward from ‘BBB’ to ‘BBB-’ and assigned a negative outlook.
• Fitch claims lender has 7.1% non-performing loan ratio while as lender places its NPL at a lower 2.44%.

The African Peer Review Mechanism (APRM) has strongly criticized Fitch Ratings over its recent decision to downgrade the African Export-Import Bank (Afreximbank), describing the move as flawed and based on a fundamental misunderstanding of intra-African financial architecture.

On 4 June 2025, Fitch Ratings revised Afreximbank’s long-term foreign currency issuer default rating downward from ‘BBB’ to ‘BBB-’ and assigned a negative outlook. The agency justified its decision by citing increased credit risks and alleged deficiencies in risk management, singling out what it claimed to be a 7.1 per cent non-performing loan (NPL) ratio.

According …

• In a body blow, Fitch Ratings has moved Ethiopia’s rating from “CC,” where it had been downgraded in November, to the new status of “C”.
• This adjustment reflects the agency’s deepening concerns about Ethiopia’s economic health and the rising risk of default following a missed interest payment on 11 December.
• A further severe downgrade by Fitch Ratings to ‘restricted default’ (RD) looms if Ethiopia fails to make the coupon payment within the set 14-day grace period.

Fitch Ratings agency has served Ethiopia’s economy a gut punch by further downgrading Ethiopia’s credit rating into junk territory, expressing concerns about the “increased likelihood” of default by the second most populous country in Africa.

This economic setback for Ethiopia, home to approximately 120 million people, comes as a result of the country’s failure to meet its financial obligations to creditors. Specifically, Ethiopia was unable to pay a coupon on its single …

Fitch has added that the impossibility to borrow on international capital markets has triggered further downgrades in the credit ratings of the Sub-Saharan countries.

Angola and Gabon have witnessed their credit ratings upgraded in recent months. The upward trend refers to the surge in oil prices globally, which has boosted the finances of the two countries.

Several countries projects to experience rapid economic growth as the tourism industry recovers from the pressure exerted by the COVID-19 pandemic and more mineral sources continue to be discovered in the continent.…

Global credit rating agency Fitch Ratings has affirmed the African Development Bank’s (www.AfDB.org) credit rating at ‘AAA’, with a stable outlook.

Fitch said the triple-A rating was driven by the ‘extraordinary support’ of the Bank’s shareholders.

Fitch views the Bank’s risk-management policies as ‘conservative’ and assesses them as ‘excellent’, in line with AAA-rated peers. “Concentration risk is ‘low’, with the bank’s five largest exposures accounting for 32% of total banking portfolio at end-2020.”

Bajabulile “Swazi” Tshabalala, Vice President for Finance and Chief Finance Officer of the African Development Bank, said: “The affirmation of the Bank’s triple-A ratings by Fitch, recognizes the very strong shareholder support our institution benefits from, as well as its strong capitalization and risk management capabilities. The affirmation also speaks to the importance of the Bank’s public policy mandate, particularly during these very challenging times.”

The global ratings agency assesses the Bank’s overall exposure to …