The African Export-Import Bank (Afreximbank) has disputed Fitch Ratings’ recent decision to revise its outlook to negative, emphasizing that its financial position remains robust and its legal framework shields it from risks highlighted by the agency.
In a statement released on Tuesday, Afreximbank stressed its full compliance with International Financial Reporting Standards (IFRS), including IFRS 9, which governs the classification of loan performance. The bank also noted that its 2024 financial statements, which include external audit support, outline these practices in detail.
Fitch, in a report issued on June 4, expressed concerns that some African governments’ debt to the bank could be subject to restructuring, prompting the negative outlook. The agency also pointed out a divergence between its definition of non-performing loans (NPLs) and Afreximbank’s, which incorporates forward-looking information.
However, Afreximbank rejected any suggestion that it could be involved in debt restructuring processes, stating that such actions would be inconsistent with its establishment treaty. The bank emphasized that its operations and loan treatment are governed by the treaty, which provides binding protections against unilateral changes to borrower terms.
Founded by 53 African states, Afreximbank reiterated that its legal structure ensures limited exposure to changes outside its established framework. Despite Fitch’s revised outlook, the agency acknowledged the bank’s strong capital base, high equity-to-assets ratio, and excellent internal capital generation. It also praised the quality of the bank’s treasury assets.
Afreximbank underscored that these attributes demonstrate its strong risk management capabilities and resilience. The bank reaffirmed its commitment to supporting African countries through economic challenges while continuing to foster trade, development, and macroeconomic stability across the continent.
