The African Export-Import Bank (Afreximbank) said on Friday it had terminated its relationship with credit ratings agency Fitch, citing fundamental disagreements over how the agency assesses the bank’s mandate and risk profile.
The Cairo-based lender said it no longer believed Fitch’s credit rating process reflected an adequate understanding of Afreximbank’s establishment agreement, mission and legal protections.
Fitch downgraded Afreximbank’s long-term foreign currency rating last year to one notch above junk status and assigned it a negative outlook, signalling the possibility of a further downgrade.
The outlook reflected Fitch’s concern that loans extended by Afreximbank could be included in sovereign debt restructurings currently under discussion in countries such as Ghana and Zambia, which are seeking relief under international frameworks.
Such a move would undermine Afreximbank’s claim to preferred creditor treatment, a status typically enjoyed by multilateral lenders such as the International Monetary Fund and the World Bank, whose loans are generally exempt from restructuring.
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Afreximbank has consistently argued that its founding treaty and shareholder agreements provide legal protections that shield its claims from restructuring. The bank said Fitch’s position failed to recognise these safeguards.
“The decision was taken due to our firm belief that the credit rating exercise no longer reflects a good understanding of the bank’s establishment agreement, its mission and its mandate,” Afreximbank said in a statement.
It added that the institution remained financially resilient, supported by strong shareholder relationships and legal protections signed and ratified by its member states.
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Fitch declined to comment.
Afreximbank is owned by African governments, central banks and private investors, and has become a key source of financing for the continent, particularly as access to international capital markets has tightened and concessional lending from wealthy countries has declined.
The bank has expanded its role in recent years, providing trade finance, balance-of-payments support and emergency funding to African economies facing currency shortages and debt distress.
Concerns over its credit standing have grown in recent months. Earlier this month, U.S. investment bank JPMorgan downgraded its recommendation on Afreximbank bonds, citing the risk that Fitch could cut the bank’s rating to below investment grade.
JPMorgan pointed to reports that Afreximbank could incur losses on loans to Ghana, which is undergoing a wide-ranging debt restructuring following its 2022 default.
The dispute highlights broader tensions between African multilateral lenders and global rating agencies, as governments and regional institutions argue that conventional credit metrics fail to account for development mandates and treaty-based protections.
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For now, Afreximbank said it would continue engaging with other stakeholders and reaffirmed its commitment to supporting African economies during a period of heightened financial stress.
