Home / Business and Economy / Afreximbank Regains Investment Grade After Dispute
Afreximbank Regains Investment Grade After Dispute
15 Jun
Summary
- S&P Global Ratings elevated Afreximbank's rating to BBB+ with a stable outlook.
- The bank's asset base significantly grew to $42.3 billion by end-2025.
- The rating agency did not incorporate preferred creditor status due to private sector lending.
S&P Global Ratings has upgraded the African Export-Import Bank (Afreximbank) to investment grade, assigning it a BBB+ rating with a stable outlook. This marks a significant turnaround for the institution, especially after recent disagreements with Fitch Ratings.
S&P cited Afreximbank's consistent countercyclical lending and robust shareholder support as key factors for the upgrade. The bank's financial footprint has expanded dramatically, with total assets growing from $7.1 billion in 2015 to $42.3 billion by the end of 2025.
However, S&P's assessment did not include preferred creditor status, a common benefit for multilateral institutions. This was primarily because Afreximbank directs nearly 80% of its loans to private sector entities.
Despite the positive rating, S&P cautioned that prolonged payment arrears and further sovereign restructurings, such as those experienced with Ghana and Zambia, could impact the bank's asset quality. Concerns about Afreximbank's governance had previously led Fitch Ratings to downgrade and withdraw its ratings.
