The African Export-Import Bank (Afreximbank) has contested a recent rating by Fitch, which revised the bank’s outlook to negative, asserting instead that it maintains a strong and resilient financial position.
In a statement issued on Tuesday, Afreximbank clarified that its financial reporting is fully aligned with International Financial Reporting Standards (IFRS), including IFRS 9, which governs the classification and staging of loan performance, particularly in the treatment of Non-Performing Loans(NPLs).
The bank noted that Fitch’s definition of NPLs differs from its own, which corporates forward-looking assessments, as indicated in the rating report dated June 4, 2025.
Afreximbank further pointed out that Fitch itself acknowledged the bank’s financial resilience and strong capitalisation, underpinned by a sound risk management framework.
“The bank operates with a high level of collateral and credit risk mitigants and has already taken relatively large provisions on some sovereign exposures, which would reduce any potential further negative financial impact for the bank. Strong equity to assets and guarantees ratio” and “excellent international capital generation,” it stated.
Fitch’s decision to assign a negative outlook was reportedly driven by concerns that debts owed to Afreximabank by certain sovereign borrowers might be subject to restructuring.
However, the bank explained that its establishment through a treaty signed by 53 participating states shields it from unilateral borrower terms. It also emphasised that it is not involved in any debt restructuring negotiations with member countries.
Afreximbank reaffirmed its commitment to supporting member states in navigating economic challenges, while promoting trade-led growth and economic development.
