The African Export-Import Bank (Afreximbank) has formally challenged Fitch Ratings’ decision to downgrade its long-term Issuer Default Rating (IDR) from ‘BBB’ to ‘BBB-’, with a negative outlook, asserting that the move is based on flawed assumptions and does not reflect the bank’s strong financial fundamentals.
Okay.ng reports that the downgrade, announced by Fitch on June 4, 2025, was attributed to concerns over potential restructuring of debts owed to Afreximbank by certain African governments.
In response, the bank has categorically rejected any suggestion of involvement in debt restructuring talks and reaffirmed its commitment to robust governance and treaty-backed lending practices.
In a statement issued on Tuesday, Vincent Musumba, Communications and Events Manager for Media Relations, said the bank’s financial reporting strictly adheres to International Financial Reporting Standards (IFRS), particularly IFRS 9, which governs how loans are classified and managed—including the treatment of non-performing loans (NPLs).
“Afreximbank operates under very high standards of financial transparency,” the statement said. “The Bank’s application of IFRS 9 is comprehensively detailed in its 2024 Financial Statements and further clarified in the external auditors’ report.”
The bank also pointed out that Fitch itself acknowledged several indicators of strength, including “strong capitalization,” a “high level of collateral and credit risk mitigants,” and an “excellent internal capital generation” capacity. According to Fitch’s own report, the bank has already taken “relatively large provisions” on some sovereign exposures, which would reduce any further negative impact.
The statement further noted that Fitch’s outlook downgrade appears to stem from the mistaken belief that Afreximbank could arbitrarily alter the terms of its treaty-based agreements with member states.
“For clarity, the Bank establishment agreement is a treaty entered into by, and among, all participating states and between the participating states and the Bank,” Afreximbank stated. “To suggest that the Bank would participate in debt restructuring negotiations would be inconsistent with the treaty and its legal framework.”
In a related development, the African Peer Review Mechanism (APRM), an organ of the African Union, also criticised Fitch’s decision, describing it as flawed and calling for a comprehensive review of the rating action.
Despite the downgrade, Afreximbank says it remains fully committed to its mission of supporting trade, promoting economic development, and ensuring macroeconomic stability across its 53 participating African nations. The bank also reiterated its financial resilience and capacity to withstand external shocks without compromising its obligations.
