Afreximbank Challenges Fitch, Reaffirms Financial Stability

The African Export-Import Bank has challenged Fitch Ratings‘ decision to revise its outlook to negative, insisting its financial position remains strong and its legal structure shields it from the risks highlighted by the agency.

In a statement on Tuesday, the bank said it complies fully with International Financial Reporting Standards, including IFRS 9, which guides the classification of loan performance. These practices, it noted, are detailed in its 2024 financial statements and supported by an external audit.

Fitch, in a 4 June report, cited concerns that debt owed to the bank by some African governments could be subject to restructuring, prompting the revised outlook. The agency also said its definition of non-performing loans (NPLs) differs from Afreximbank’s, which “makes use of forward-looking information.”

The bank rejected suggestions that it could be involved in debt restructuring processes.

“To do so would be inconsistent with the Bank establishment treaty,” it said. “The treatment of its loans and other activities is governed by the treaty and not by classifications created outside its framework.”

Afreximbank was established through a treaty signed by 53 African states. It argued that this legal foundation provides binding protections and limits its exposure to unilateral changes in borrower terms.

Despite the outlook revision, Fitch acknowledged the bank’s strong capital base, describing it as having a “strong equity to assets and guarantees ratio” and “excellent internal capital generation”. It also highlighted the “strong quality” of the bank’s treasury assets.

Afreximbank said these attributes demonstrate the strength of its risk management and resilience.

The bank reaffirmed its commitment to supporting its member countries through economic uncertainty while continuing to promote trade, development and macroeconomic stability across the continent.