ADDIS ABABA – African Export-Import Bank (Afreximbank) said it has received an inaugural international-scale long term issuer rating of A- with a stable outlook from the Japan Credit Rating Agency (JCR).
The rating reflects the strong support that Afreximbank receives from its shareholders, its preferred creditor status, its solid earnings capacity, and the crucial role that the Bank plays in supporting key African Union (AU) initiatives.
JCR noted in its assessment the growing pre-eminence of Afreximbank in African trade, citing the Bank’s involvement in critical initiatives that underpin the African Continental Free Trade Area (AfCFTA) as a key indicator.
This new rating also captures the Bank’s key strength in structured trade finance, demonstrating its ability to de-risk its lending portfolio, according to Afreximbank.
“The A- rating assigned to Afreximbank is an affirmation of the Bank’s strengthening credit profile, underpinned by a strong risk management culture,” said Benedict Oramah, President of the Bank.
“We are also pleased that the work of the Bank supporting such initiatives as the AfCFTA is being recognized and its importance rewarded,” he added.
Afreximbank said it’s achievement of the A- rating from a second rating agency is a major milestone, which comes as the Bank is about to embark on a new 5-year strategic plan gives impetus to our fundraising activities.
“This will positively impact Afreximbank’s ability to deliver on its mandate,” said President of the Bank that plans to execute a debt capital market transaction in Japan.
Afreximbank, which discribes its as a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade, also has ratings assigned by GCR (international scale) (A-), Moody’s (Baa1) and Fitch (BBB-).