China Chengxin International Credit Rating Company Limited (CCXI) has assigned an ‘AAA/Stable’ rating to African Export-Import Bank (Afreximbank).
In its 2024 Credit Rating Report CCXI noted that the rating considered, as key rating strengths, Afreximbank’s “very high strategic positioning; sound risk management system; agility and adaptability in business generation, very strong profitability and prudent liquidity management underpinned by a very high coverage ratio of current assets over short-term debts.
“CCXI recognises Afreximbank’s strategic relevance to the (African) continent and its ability to execute on its strategic goals and mandate and to meet the needs of member states at different stages of development, even during the most challenging times,” it added, stating that it believed that Afreximbank’s ratings would remain stable over the next 12 to 18 months.
Reacting to the rating announcement, Afreximbank’s Senior Executive Vice President, Denys Denya, noted that the rating represented the strongest endorsement the Bank had received from any credit rating agency and that the Bank had become one of the first African multilateral financial institutions to achieve a top credit rating grade in the Chinese market, especially on the strength of its stand-alone credit profile.
“This is a testament to the Bank’s systemic relevance to the African continent; its strong delivery of its developmental mandate; its prudent risk management practices and its relentless focus on capital and liquidity over the years which have culminated in a formidable rating that provides us with new opportunities to raise competitively priced capital in China and to diversify our funding partnerships.
Confirming that the bank would continue to play a pivotal role in facilitating China-Africa trade and investment across its Member States, he highlighted the robust relationships it enjoys which illustrates how integral it has become to the achievement of the African Union’s key strategic economic programmes and initiatives, covering the continent and the diaspora, thereby integrating Global Africa.
Denya furthered that the rating puts Afreximbank on a stronger footing as it embarks on fundraising activities in a relatively new capital market as we continue to leverage optimal financial resources into Africa.
He pointed out that the ‘AAA’ credit rating would give utmost assurance to the Bank’s new and existing funding partners in China to support the Bank’s fundraising activities on competitive terms and would position the Bank to pursue its developmental mandate and objectives.
