{"id":468422,"date":"2020-09-24T12:46:11","date_gmt":"2020-09-24T11:46:11","guid":{"rendered":"https:\/\/www.kapitalafrik.com\/?p=468422"},"modified":"2020-09-24T12:47:55","modified_gmt":"2020-09-24T11:47:55","slug":"fitch-affirms-afreximbanks-bbb-credit-rating","status":"publish","type":"post","link":"https:\/\/www.financialafrik.com\/en\/2020\/09\/24\/fitch-affirms-afreximbanks-bbb-credit-rating\/","title":{"rendered":"Fitch affirms Afreximbank\u2019s BBB- credit rating"},"content":{"rendered":"<div class=\"pdfprnt-buttons pdfprnt-buttons-post pdfprnt-top-bottom-left\"><\/div><p style=\"font-weight: 400;\"><em>Credit ratings agency highlights strong solvency and liquidity, bolstered by ongoing and expected capital increases<\/em><\/p>\n<p style=\"font-weight: 400;\">The African Export-Import Bank (Afreximbank) announces that Fitch Ratings has affirmed the Bank\u2019s long-term Issuer Default Ratings (IDR) at \u2018BBB-\u2018 with a stable outlook. The agency also affirmed the Bank&#8217;s Short-Term IDR at &#8216;F3&#8217; and senior unsecured debt at &#8216;BBB-&#8216;.<\/p>\n<p style=\"font-weight: 400;\">Fitch highlighted that Afreximbank&#8217;s &#8216;BBB-&#8216; rating is driven by its intrinsic features, including solvency and liquidity, and adding that the ongoing and expected capital increases support the resilience of the bank&#8217;s solvency during the COVID-19 pandemic. The agency noted that \u201cthe strong capitalization is underpinned by the equity to assets guarantees ratio at 18.1% in 2019, close to \u00a02018 level (18.5%) as the bank\u2019s expansion has been broadly matched by paid-in capital payments from the ongoing US$1 billion capital increase (targeted to be completed by end-2021, 91% had been raised by end-H1 2020) and internal capital generation\u201d. Fitch further noted that a high level of loan collateralization (88% of the facilities), credit insurances from \u2018A\u2019 rated insurers and hedging strategies on commodity backed facilities, have all helped the Bank maintain a low impairment ratio\u00a0of\u00a02.4% on a 10-year average, \u201cdespite its &#8216;high&#8217; risk operating environment.\u201d Fitch observes that the Bureau of African Union Heads of States and Governments recently endorsed a significant increase to Afreximbank\u2019s subscribed capital, which will further support the resilience of the Bank\u2019s solvency amid COVID-19 related pressures on asset quality. The agency expressed the view that Afreximbank\u2019s PATIMFA facility, which is supporting African nations during the pandemic, will incentivize sovereigns to remain current on loan repayments with the Bank.<\/p>\n<p style=\"font-weight: 400;\"><strong>Prof. Benedict Oramah, President of Afreximbank<\/strong>, said:<\/p>\n<p style=\"font-weight: 400;\"><em>\u201cAfreximbank is pleased to receive this positive affirmation from Fitch and we have full confidence in our resilience during the COVID-19 pandemic. Through strong liquidity and robust risk management, we have ensured that we have the solid foundation needed to support Africa\u2019s post-pandemic recovery and the continued expansion of intra-African trade. Our strategic response to COVID-19, and the implementation of the African Continental Free Trade Agreement, will only strengthen our position, reinforcing our role as a key driver of the continent\u2019s economic development.\u201d\u00a0<\/em><\/p>\n<p style=\"font-weight: 400;\">The full Fitch report can be found at:\u00a0<a href=\"https:\/\/medias.afreximbank.net\/Fitch-Affirms-Afreximbank-at-BBB-Outlook-Stable-1.pdf\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/medias.afreximbank.net\/Fitch-Affirms-Afreximbank-at-BBB-Outlook-Stable-1.pdf&amp;source=gmail&amp;ust=1601033315406000&amp;usg=AFQjCNFXCxp94752BzMiHW2kwIBFyuy9Mg\">https:\/\/medias.afreximbank.net\/Fitch-Affirms-Afreximbank-at-BBB-Outlook-Stable-1.pdf<\/a><\/p>\n<p style=\"font-weight: 400;\"><strong>About Afreximbank:\u00a0<\/strong>The African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution with the mandate of financing and promoting intra-and extra-African trade. Afreximbank was established in October 1993 and owned by African governments, the African Development Bank and other African multilateral financial institutions as well as African and non-African public and private investors. The Bank was established under two constitutive documents, an Agreement signed by member states, which confers on the Bank the status of an international organization, and a Charter signed by all Shareholders, which governs its corporate structure and operations. Afreximbank deploys innovative structures to deliver financing solutions that are supporting the transformation of the structure of Africa\u2019s trade, accelerating industrialization and intra-regional trade, thereby sustaining economic expansion in Africa. At the end of 2019, the Bank\u2019s total assets and guarantees stood at USD$15.5 billion and its shareholders funds amounted to US$2.8 billion. Voted \u201cAfrican Bank of the Year\u201d in 2019, the Bank disbursed more than US$31billion between 2016 and 2019. Afreximbank has ratings assigned by GCR (international scale) (A-), Moody\u2019s (Baa1) and Fitch (BBB-). The Bank is headquartered in Cairo, Egypt.<\/p>\n<div class=\"pdfprnt-buttons pdfprnt-buttons-post pdfprnt-top-bottom-left\"><\/div>","protected":false},"excerpt":{"rendered":"<p>Credit ratings agency highlights strong solvency and liquidity, bolstered by ongoing and expected capital increases The African Export-Import Bank (Afreximbank) announces that Fitch Ratings has affirmed the Bank\u2019s long-term Issuer Default Ratings (IDR) at \u2018BBB-\u2018 with a stable outlook. The agency also affirmed the Bank&#8217;s Short-Term IDR at &#8216;F3&#8217; and senior unsecured debt at &#8216;BBB-&#8216;.<\/p>\n","protected":false},"author":536282,"featured_media":468424,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"aside","meta":{"pmpro_default_level":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"translated_post_url_fr":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[16158,12046],"tags":[2360],"class_list":{"0":"post-468422","1":"post","2":"type-post","3":"status-publish","4":"format-aside","5":"has-post-thumbnail","7":"category-bank","8":"category-leaders-en","9":"tag-afreximbank","10":"post_format-post-format-aside","11":"pmpro-has-access"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Fitch affirms Afreximbank\u2019s BBB- credit rating - Financial Afrik<\/title>\n<meta name=\"description\" content=\"Headed by Adama Wade and his team of 20 journalists, Kapital Afrik offers strategic and financial information to executives and managers. 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