The African Export-Import Bank (Afreximbank) has announced the termination of its credit rating relationship with Fitch Ratings, citing a comprehensive review of the partnership. According to a statement released by the bank, the decision was made due to the belief that Fitch’s credit rating exercise no longer adequately captures Afreximbank’s establishment agreement, mission, and mandate.
Afreximbank stated that despite the termination, its business fundamentals remain solid, with strong shareholder relationships and legal protections embedded in its Establishment Agreement, which has been signed and ratified by member states. The bank emphasized its commitment to delivering on its mandate of promoting trade and economic integration across Africa, noting that its robust profile continues to underpin confidence among stakeholders.
The termination of the credit rating relationship with Fitch Ratings follows a review of the partnership, during which Afreximbank concluded that the credit rating exercise no longer reflects a good understanding of the bank’s Establishment Agreement, its mission, and its mandate. The bank’s Establishment Agreement is a critical framework that outlines its purpose, functions, and responsibilities, and is signed and ratified by its member states.
Afreximbank’s decision to terminate its credit rating relationship with Fitch Ratings is significant, as it highlights the importance of ensuring that credit rating agencies have a thorough understanding of the bank’s mandate and operations. The bank’s commitment to promoting trade and economic integration across Africa remains unchanged, and it will continue to work towards achieving its goals through its various programs and initiatives.
The termination of the credit rating relationship is not expected to have a significant impact on Afreximbank’s operations, as the bank’s strong shareholder relationships and legal protections provide a solid foundation for its activities. However, the decision may have implications for the bank’s future interactions with credit rating agencies, as it seeks to ensure that its ratings are based on a thorough understanding of its mandate and operations. Overall, Afreximbank’s decision to terminate its credit rating relationship with Fitch Ratings reflects its commitment to ensuring that its ratings are accurate and reflective of its activities.
