Fitch affirms ‘AAA’ credit rating for AfDB | Dailytrust

Fitch affirms ‘AAA’ credit rating for AfDB

African Development Bank (AfDB)

A global credit rating agency, Fitch Ratings has affirmed the African Development Bank’s (AfDB) credit rating at ‘AAA’, with a stable outlook.

In a statement by the bank on Thursday, Fitch said the triple-A rating was driven by the ‘extraordinary support’ of the Bank’s shareholders.

Fitch views the Bank’s risk-management policies as ‘conservative’ and assesses them as ‘excellent’, in line with AAA-rated peers. “Concentration risk is ‘low’, with the bank’s five largest exposures accounting for 32% of total banking portfolio at end-2020.”

Commenting, Vice President for Finance and Chief Finance Officer of the bank, Bajabulile “Swazi” Tshabalala, said: “The affirmation of the Bank’s triple-A ratings by Fitch, recognizes the very strong shareholder support our institution benefits from, as well as its strong capitalization and risk management capabilities.

“The affirmation also speaks to the importance of the Bank’s public policy mandate, particularly during these very challenging times.”

The global ratings agency assesses the Bank’s overall exposure to risks as ‘Low’, balancing ‘Moderate’ credit risk with ‘Excellent’ risk management policies, ‘Low’ concentration, and ‘Very Low’ equity and market risks.”

AfDB Group President, Dr. Akinwumi A. Adesina said: “The African Development Bank welcomes the affirmation of the Bank’s ‘AAA’ rating, with a stable outlook, despite enormous challenges posed by COVID-19.

“The Bank will continue to enhance its policy and fiscal relevance in support of regional member countries, as they contend with the global and regional repercussions of the pandemic. While helping African economies reposition their economies in a COVID-19 environment, we will also maintain our prudential ratios and adequate buffers.”

AfDB was recognized by Global Capital in 2020, for its highly successful $3 billion Fight COVID-19 Social Bond, one of the Bank’s many initiatives to alleviate the impact of the pandemic on African lives and economies.