African Export-Import Bank (Afreximbank), Africa’s foremost multilateral trade finance institution, announces that the global credit ratings agency Moody’s, on 14 July affirmed the Bank’s long-term credit rating at Baa1, with a stable outlook. The agency determines its rating for supranationals based on three criteria: capital adequacy, liquidity, and funding and strength of member support.
Moody’s notes that Afreximbank’s credit profile is “supported by its collateralised trade finance business model, with a short average asset maturity and a relatively well-diversified loan portfolio that allows it to respond flexibly to the coronavirus crisis.”
The report adds that “the stable outlook is supported by the Bank’s successful equity-raising performance and its track record of adapting its strategy to challenges in the operating environment of member countries without undermining its asset-quality performance.” Prof. Benedict Oramah, President of Afreximbank, said: “Afreximbank is delighted by the outcome of Moody’s credit review, considering the challenges posed by COVID-19. As well as having a profit-oriented business model, the Bank has a developmental mandate and a responsibility to all its members states to intervene in times of emergency. We have acted decisively with the launch of the Pandemic Trade Impact Mitigation Facility (PATIMFA). We look forward to continuing supporting the Bank’s member countries in a prudent and impactful manner.”
