AU Backs Afreximbank’s Break With Fitch Over Rating Concerns
AU Backs Afreximbank’s Break With Fitch Over Rating Concerns
Fitch Ratings risks “misinforming investors” by issuing unsolicited credit assessments of the Afreximbank after the bank severed ties with the agency, the African Union’s ratings watchdog stated.
Afreximbank said it ended its relationship with Fitch due to concerns over the quality of the agency’s analytical approach.
The AU’s African Peer Review Mechanism (APRM) affirmed the decision as justified, stressing that any future non-participatory ratings from Fitch could mislead investors.
In June, Fitch downgraded Afreximbank to one notch above “junk” status, citing high credit risks and weak risk management, and placed it on negative outlook, hinting at a possible further downgrade.
However, the APRM clarified that Afreximbank’s move was not a reaction to the downgrade but stemmed from fundamental disagreements over Fitch’s rationale, analytical framing, and interpretation of risk.
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