https://en.sputniknews.africa/20260203/afreximbank-fires-fitch-citing-prejudicial-approach-over-factual-stats-expert-1083088760.html
Afreximbank Fires Fitch, Citing 'Prejudicial' Approach Over 'Factual Stats': Expert
Afreximbank Fires Fitch, Citing 'Prejudicial' Approach Over 'Factual Stats': Expert
Sputnik Africa
This decisive move by the Pan-African multilateral financial institution follows an increasingly contentious relationship with the Western credit rating... 03.02.2026, Sputnik Africa
2026-02-03T16:11+0100
2026-02-03T16:11+0100
2026-02-03T16:11+0100
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Afreximbank Fires Fitch, Citing 'Prejudicial' Approach Over 'Factual Stats': Expert
Sputnik Africa
This decisive move by the Pan-African multilateral financial institution follows an increasingly contentious relationship with the Western credit rating agency. The bank has determined that the agency's pattern of misleading downgrades is fundamentally misaligned with its own governing principles and strategic objectives.
For more than three decades, Afreximbank has been a pivotal force in transforming intra-African trade structure and boosting economic expansion through innovative financing, strong support for the African Continental Free Trade Agreement (AfCFTA), and key initiatives like the Pan-African Payment and Settlement System (PAPSS) and a US$10 billion Adjustment Fund. The institution has grown into a significant financial group with over US$40 billion in total assets and contingencies, investment-grade ratings from multiple agencies, and is headquartered in Cairo, Egypt.Afreximbank concluded 2024 with over US$40.1 billion in total assets and US$7.2 billion in shareholder funds. It maintains investment-grade ratings from four agencies—Global Credit Ratings Co. (A), Moody’s (Baa2), China Chengxin International Credit Rating Co., Ltd. (AAA), and Japan Credit Rating Agency (A-)—and operates as a group including its fund Fund for Export Development Africa (FEDA) and insurer AfrexInsure.While other international raters have recognized a robust and growing institution, Fitch charted a uniquely adversarial course. It initiated a downgrade path, first moving the rating from BBB to BBB- with a Negative Outlook in June 2025, citing rising credit risk and concerns over risk oversight. This was followed by a cut to non-investment grade (BB+, or "junk status") in late 2025/early 2026, based on its assessment of sovereign exposure risks.African Currents reached out to Dr. Misheck Mutize, Lead Expert: Country Support on Rating Agencies, African Peer Review Mechanism, to unravel reasons behind Afreximbank's decision to end its credit rating agreement with Fitch Ratings and its anticipated benefits, and the potential establishment of a credible African credit rating agency.Want to hear more from our guest? Catch the full conversation on the African Currents podcast, brought to you by Sputnik Africa.Find our episodes not just on the website, but also on Telegram.► You can also stream our podcast on Apple Podcasts, Spotify, Deezer, Pocket Casts, Afripods, Podcast Addict.► Check out all the episodes of African Currents.
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Afreximbank Fires Fitch, Citing 'Prejudicial' Approach Over 'Factual Stats': Expert
This decisive move by the Pan-African multilateral financial institution follows an increasingly contentious relationship with the Western credit rating agency. The bank has determined that the agency's pattern of misleading downgrades is fundamentally misaligned with its own governing principles and strategic objectives.
For more than three decades, Afreximbank has been a pivotal force in transforming intra-African trade structure and boosting economic expansion through innovative financing, strong support for the African Continental Free Trade Agreement (AfCFTA), and key initiatives like the Pan-African Payment and Settlement System (PAPSS) and a US$10 billion Adjustment Fund. The institution has grown into a significant financial group with over US$40 billion in total assets and contingencies, investment-grade ratings from multiple agencies, and is headquartered in Cairo, Egypt.
Afreximbank concluded 2024 with over US$40.1 billion in total assets and US$7.2 billion in shareholder funds. It maintains investment-grade ratings from four agencies—Global Credit Ratings Co. (A), Moody’s (Baa2), China Chengxin International Credit Rating Co., Ltd. (AAA), and Japan Credit Rating Agency (A-)—and operates as a group including its fund Fund for Export Development Africa (FEDA) and insurer AfrexInsure.
While other international raters have recognized a robust and growing institution, Fitch charted a uniquely adversarial course. It initiated a downgrade path, first moving the rating from BBB to BBB- with a Negative Outlook in June 2025, citing rising credit risk and concerns over risk oversight. This was followed by a cut to non-investment grade (BB+, or "junk status") in late 2025/early 2026, based on its assessment of sovereign exposure risks.
African Currents reached out to Dr. Misheck Mutize, Lead Expert: Country Support on Rating Agencies, African Peer Review Mechanism, to unravel reasons behind Afreximbank's decision to end its credit rating agreement with Fitch Ratings and its anticipated benefits, and the potential establishment of a credible African credit rating agency.
"Fitch refers to an IMF official or report, which expresses that Afreximbank is not going to enjoy PCS [preferred Creditor Status] because the agreement that it ended with Ghana reflects that it's consistent with the treatment of all other creditors. And in this case, the controversy on this issue is that, there is no official communication from neither the government of Ghana or Afreximbank itself, expressing that position. So which means it's [Fitch] making a decision based on a third party information. And assuming that IMF is a credible international institution; but in this particular case, IMF is an interested party in that kind of issue, which is the PCS. And several times we have seen IMF researchers consistently characterizing African multilateral banks as baby multilateral banks," Dr. Mutize explained.
Want to hear more from our guest? Catch the full conversation on the African Currents podcast, brought to you by Sputnik Africa.
Find our episodes not just on the website, but also on
Telegram.► Check out all the episodes of African Currents. 
