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The African export-import bank has challenged Fitch’s ranking decision to reduce the default ranking of the long-term publisher (IDR) to ‘BBB-‘ from ‘BBB’, signifying negative views.
The bank reiterates that its financial position remains strong and its legal structure protects from the risks highlighted by the ranking agency.
In a statement issued on Tuesday by Vincent Musumba, the media relations of communication managers and events, the bank said that it was fully in accordance with international financial reporting standards, including IFRS 9, which guided the classification of loan performance.
These practices, he said, were detailed in the 2024 financial statements and supported by external audits.
Ripples Nigeria reported that Fitch Ratings, in the Ranking Action comments released on Wednesday, June 4, 2025, cited the concern that the debt owed to banks by several African governments could experience restructuring, encouraging revised prospects.
Shortly after that, the African Review Mechanism (APRM), a body supported by the African Union, described the actions of the ranking agent as a defect, while calling for a review.
Reacting, Afreximbank rejects advice that it can be involved in the debt restructuring process.
The statement reads: “Afreximbank operates under very high financial transparency standards.
“Bank financial reporting strictly adheres to the International Financial Reporting Standards (IFRS), including IFRS 9
“As quoted in the ranking report, dated June 4, 2025,” Fitch’s definition of NPL is different from the bank approach, which utilizes information on the future “.
“It is important to note that Fitch recognizes Afreximbank’s financial resilience, highlighting that” banks operate with high levels of credit and credit risk mitigans and have taken relatively large provisions on several sovereign exposure, which will reduce the potential for further financial impacts for banks “.
Also read: Fitch Dowch Downgrades Afreximbank Ranking Becomes ‘BBB -‘
“Fitch also recognizes the strong capitalization of banks including” strong equity to assets and guaranteed ratios “and” excellent internal capital generation “. The risk of concentration is also reported as” low “and its liquidity assessment” A “reflects” the quality of the strong framework of the bank.
“The decision of ‘negative view’ of Fitch, which is said to reflect” the risk that debt owes to Afreximbank by several sovereign borrowers can be restructured “, depending on the wrong view, in several places, that the agreement built by Afreximbank, which was executed by 53 participating African state states.
“For clarity, the agreement to form a bank is an agreement that is included by, and between, all the states that participate and between participating countries and banks.
“Therefore, Afreximbank wants to reiterate that they do not participate in debt restructuring negotiations related to their member countries. To do so will not be consistent with the agreement of the establishment of a bank. The loan treatment and other activities are regulated by the agreement and not by the classification made outside the framework.
“Afreximbank’s financial resilience, strong governance and unproiled commitment to excellence, and to Africa, are very important for the delivery of its mandate. Banks remain committed to supporting their member countries in navigating their economic challenges while promoting growth led by trade, economic development and public macroeconomic stability.”
By: Babajide Okeowo
