Chinese Rating Agency Confirms Afreximbank’s AAA/Stable Rating
Cairo – China Chengxin International Credit Rating Co., Ltd (CCXI) has reiterated the AAA issuer credit rating of African Export-Import Bank (Afreximbank) (www.Afreximbank.com) with a stable outlook.
This robust rating signifies CCXI’s assessment of Afreximbank’s strengths, which include exceptional strategic positioning, strong risk management systems, flexibility in business development, remarkably robust profitability, prudent liquidity management, and a very high current asset coverage ratio against short-term debts.
The rating agency noted that it anticipates Afreximbank’s ratings to maintain stability over the upcoming 12 to 18 months, even amid potential credit risks stemming from macroeconomic and operational conditions affecting the Bank.
In reaction to the rating announcement, Denys Denya, Afreximbank’s Senior Executive Vice President, emphasized that the rating underscores the Bank’s critical role in Africa and effective risk management practices.
Denya mentioned that this will further open avenues for funding diversification, particularly in China’s Panda bond market, while advancing Afreximbank’s development mission and facilitating trade between Africa and China.
He reaffirmed Afreximbank’s dedication to enhancing trade finance in Africa and the Caribbean, even during challenging circumstances.
Denya stressed that the Bank’s steadfast commitment to its member states and clients played a significant role in achieving this impressive rating.
He also pointed out that the Chinese rating bolsters the Bank’s preferred creditor status among its 53 member states in Africa and 13 in the Caribbean.
Denya stated: “CCXI’s rating is a significant achievement amidst a challenging operational landscape, illustrating Afreximbank’s systemic importance to Africa and the Caribbean, our main focus regions.”
He added that the rating showcases the bank’s resilience and will enable it to leverage the depth and breadth of the Panda market while seeking to diversify its global funding sources.
The CCXI rating is expected to drive increased support for Afreximbank’s funding efforts in the Chinese market, thereby enhancing the Bank’s market presence and credit standing.
In April this year, Afreximbank successfully launched its inaugural Panda bond in the China Interbank Bond Market, raising RMB 2.2 billion (US$303 million).
This issuance was particularly successful, being oversubscribed and attracting high-quality investors, thereby underscoring strong market confidence in the Bank’s credit profile.
This landmark transaction not only provides Afreximbank with a new source of diversified funding in Chinese Renminbi but also establishes a vital benchmark for other African borrowers and marks a significant step in deepening financial collaboration between Africa and China.
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