Fitch downgrades Afreximbank to BB+, citing Ghana loan restructuring and weakened policy importance, while bank’s outlook remains stable
Fitch Ratings on Wednesday downgraded the African Export-Import Bank (Afreximbank) to BB+ from BBB-, officially placing the Cairo-based lender in junk territory.
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The short-term issuer default rating was cut to B from F3, while long-term ratings on the bank’s global medium-term note programme also fell to BB+ from BBB-.
Fitch retained a stable outlook for the bank.
The downgrade follows Afreximbank’s decision to sever ties with Fitch last week, citing concerns that the agency’s methodology failed to adequately reflect the bank’s legal mandate, treaty protections, and unique role in financing African trade and development.
Fitch attributed the downgrade primarily to a reassessment of Afreximbank’s policy importance and business profile after the bank reached an agreement in principle with Ghana on a $750 million sovereign loan that had been in default.
The agency said the deal demonstrated that the lender did not receive preferential treatment, which historically underpinned its status as a preferred creditor.
“We view this as evidence that Afreximbank did not benefit from its preferred creditor status,” Fitch said.
The agency also cited the high-risk operating environment across Afreximbank’s member countries, including weak credit quality, low per capita income, and elevated political risk.
Governance and strategic risks were flagged as elevated, and the overall business environment notch fell by three levels.
Despite the downgrade, Fitch noted that Afreximbank’s standalone credit profile remains BB+, supported by a solvency assessment of BBB+ and a liquidity rating of A.
The bank benefits from strong capitalisation, moderate risk exposure, and diversified funding lines, including $2.1 billion in credit facilities.
Shareholder support, particularly from Egypt and Nigeria, was assessed at BB-, reflecting prior capital injections, dividend reinvestments, and callable capital coverage.
With the Afreximbank-Fitch relationship now severed, investors will need to rely on alternative credit assessments or internal analysis to evaluate the lender’s risk profile.
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The bank’s decision to end the partnership reflects a wider trend of African institutions seeking greater control over how their creditworthiness is measured internationally.
