S&P Global Ratings has restored the African Export-Import Bank (Afreximbank) to investment-grade status, assigning it a BBB+ rating with a stable outlook, nearly 12 years after its last such assessment.
The upgrade marks a significant shift in sentiment toward the pan-African lender, which has recently been at the centre of debates over sovereign debt exposure and its role in debt restructurings across Africa.
S&P’s decision places Afreximbank one notch above Moody’s Baa2 rating and follows months after the bank severed ties with Fitch Ratings, which had downgraded it to junk status. The bank criticised Fitch over its assessment of Afreximbank’s role in sovereign debt restructurings in countries such as Ghana and Zambia.
Fitch later withdrew its ratings altogether.
In its June 11 statement, S&P said the upgrade reflected Afreximbank’s strong track record as a countercyclical lender and its solid shareholder backing.
The agency also highlighted the rapid expansion of the bank’s balance sheet, noting that total assets rose to US$42.3 billion by the end of 2025, up from US$7.1 billion in 2015.
Credit ratings are a key determinant of borrowing costs in global capital markets, meaning the upgrade is expected to improve Afreximbank’s access to cheaper funding and strengthen its role in trade and development finance across Africa.
However, S&P maintained a cautious tone, warning that the bank remains exposed to risks linked to sovereign debt distress on the continent.
Afreximbank has increasingly been drawn into debates over whether it should be granted “preferred creditor status” a protection typically afforded to multilateral lenders such as the International Monetary Fund (International Monetary Fund) and the World Bank.
Unlike those institutions, Afreximbank has a mixed shareholder base that includes both public and private entities, complicating its eligibility for such protections during sovereign debt restructurings.
S&P said it did not factor preferred creditor status into its assessment, noting that roughly 80 percent of Afreximbank’s lending is directed toward private-sector borrowers rather than sovereigns.
The rating agency also acknowledged that the bank has faced repayment delays in recent years, particularly following debt restructurings in Ghana and Zambia under the G20 Common Framework.
It noted that Afreximbank has reached an agreement with Ghana over a $750 million loan, but said no comparable resolution has been announced regarding Zambia.
S&P warned that further sovereign debt crises could negatively affect the bank’s asset quality if additional countries enter comprehensive restructuring programmes.
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“The bank’s exposure to sovereigns undertaking debt restructurings… poses a potential risk to the bank’s asset quality,” S&P said.
Despite these risks, analysts say the upgrade signals renewed confidence in Afreximbank’s financial resilience and its expanding role in financing intra-African trade and industrial development.
The decision comes at a time when African financial institutions are increasingly seeking stronger ratings to support cross-border lending, infrastructure financing and trade facilitation amid tighter global liquidity conditions.
