Afreximbank's Exit From Fitch is Move Against 'Market Distortion,' Says South African Analyst
Afreximbank's Exit From Fitch is Move Against 'Market Distortion,' Says South African Analyst
The African Export-Import Bank's decision to end its relationship with the US-based ratings agency is a strategic move to withdraw from a "strong source of misinformation," Dr. Misheck Mutize told Sputnik Africa.
Fitch relies on unverified third-party analysis, particularly from the IMF, which has a stated interest in disputing the preferred creditor status of African multilateral banks, the lead expert for country support on rating agencies at the African Peer Review Mechanism explained.
Afreximbank’s legal protections are enshrined in international treaty law, making its standing stronger than institutions that rely on practice alone, he emphasized.
The exit, therefore, shields the bank from assessments that distort its institutional character and mislead the market, the expert concluded.
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