African Export-Import Bank Formally Terminates Relationship With Rating Agency Fitch: Bank
African Export-Import Bank Formally Terminates Relationship With Rating Agency Fitch: Bank
The decision followed a review and was based on Afreximbank's "firm belief" that Fitch's rating process "no longer reflects a good understanding" of the bank's founding agreement and mandate, the Cairo-based bank stated.
The move follows a year-long dispute centered on the bank's "preferred creditor status"—a convention protecting lenders from losses during sovereign debt restructurings, typically reserved for institutions like the IMF.
The US credit rating agency recently downgraded Afreximbank's outlook to negative, citing alleged high credit risks. It has questioned whether the development bank's loans to defaulted African nations like Ghana and Zambia should be restructured, as commercial debt would be.
"Afreximbank’s business profile remains robust, underpinned by strong shareholder relationships and the legal protections embedded in its Establishment Agreement, signed and ratified by its [53] member states," the bank said.
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