S&P Global Ratings has assigned a BBB+ long-term issuer credit rating with a stable outlook to the African Export-Import Bank (Afreximbank), returning the pan-African lender to investment grade nearly 12 years after its previous assessment.
The rating agency also assigned an A-2 short-term rating to the Cairo-headquartered institution, citing its strengthened role as a countercyclical lender, consistent shareholder support through capital increases, and strategic importance in driving intra-African trade.
"Afreximbank's strong role and shareholder support underpins its enterprise risk profile being strong," S&P said in a report published on Thursday. It described the bank's financial risk profile as moderate, with a risk-adjusted capital ratio of 17.4 per cent as of September 30, 2025, rising to 21.6 per cent when including eligible callable capital.
Afreximbank has expanded rapidly over the past decade, with total assets rising from $7.1 billion in 2015 to $42.3 billion by the end of 2025. Shareholder equity increased to $8.4 billion over the same period, supported by successive capital injections.
The bank has deployed large-scale facilities during successive crises, including a $10 billion countercyclical trade liquidity facility in 2015, a $7 billion facility during the Covid-19 pandemic, and more recently a $10 billion Gulf Crisis Response Program approved in March 2026.
Liquidity and capital constraints
S&P noted that Afreximbank’s liquidity ratios are lower than those of many other multilateral development banks, with six-month and 12-month coverage ratios of 0.95 times and 0.71 times respectively. The agency also highlighted the bank’s exposure to sovereign debt restructurings in countries such as Ghana and Zambia, although it said provisions appeared adequate.
The rating agency does not incorporate preferred creditor status into its analysis, given that nearly 80 per cent of the bank’s lending is to the private sector.
S&P said it could downgrade the rating if funding conditions deteriorate, liquidity weakens materially, shareholder support fades, or capital levels decline sharply. An upgrade would require a sustained improvement in the risk-adjusted capital ratio above 23 per cent, alongside stronger liquidity buffers.
Governance and shareholder structure
The bank’s governance was assessed as “adequate”, supported by the presence of two independent directors and the African Development Bank on its board. S&P noted the multi-tiered shareholding structure, in which African states (Class A) retain significant influence, including veto rights over major changes, even as private sector participation through Class D shares could increase.
The rating comes several months after Afreximbank terminated its relationship with Fitch Ratings following a downgrade to speculative grade. Fitch had cited governance concerns and questions over loan performance reporting. S&P’s BBB+ rating is one notch above Moody’s Baa2 rating.
Posts
0 Comments