AfreximBank Calls Off Credit Rating Relationship With Fitch Ratings, Citing Fundamental Differences in Assessment Approach

The African Export-Import Bank (AfreximBank) has formally ended its long-standing credit rating relationship with Fitch Ratings, the global credit rating agency, after concluding that the current evaluation framework no longer aligns with how the Bank’s legal structure, mission and risk profile should be assessed.

In a statement, Afreximbank said a comprehensive review of its engagement with Fitch found that recent credit rating methodologies used by the agency did not adequately reflect the Bank’s Establishment Agreement – a multilateral treaty signed and ratified by its member states that underpins its mandate to support intra-and extra-African trade. According to AfreximBank, this treaty creates protections and legal commitments that differentiate its operations from those of commercial banks – distinctions that it believes were overlooked in Fitch’s assessments.

While the Bank did not immediately confirm whether it will seek ratings from alternative agencies in the future, it reiterated confidence in its financial strength and operational profile, anchored in strong shareholder backing and a solid legal foundation.

PRESS RELEASE | Fitch Ratings Warns Banks With ‘Significant’ Crypto Exposure May Face Downward Ratings Revision

Background: Rating Dispute and Wider Context

This move caps a period of public disagreement between Afreximbank and Fitch. In June 2025, Fitch downgraded the Bank’s long-term issuer credit rating from BBB to BBB- and assigned a negative outlook, citing concerns about loan quality and perceived credit risks notably relating to sovereign exposures to countries like Ghana, South Sudan and Zambia.

Afreximbank and its supporters, including the African Peer Review Mechanism (APRM) of the African Union, strongly criticized this downgrade as flawed and legally inappropriate, arguing that sovereign loans by a multilateral institution like Afreximbank cannot be treated under the same commercial risk criteria as loans made by private banks. The APRM’s analysis highlighted that Fitch’s approach led to an overstatement of non-performing loans relative to the Bank’s own disclosures, and misunderstood the legal protections conferred by the Establishment Agreement, which deems member states’ treaty obligations as distinct from typical commercial obligations.

Additionally, Afreximbank publicly contested Fitch’s negative outlook, stressing that it continues to comply with International Financial Reporting Standards (IFRS), including IFRS 9 guidelines for loan classification, and that its capital and liquidity remain strong.

Despite the dispute with Fitch, Afreximbank continues to hold investment-grade ratings from other agencies, including:

• Moody’s (Baa2)
• China Chengxin International Credit Rating Co. (CCXI) — AAA/Stable
• Global Credit Rating (GCR) — A (international scale)
• Japan Credit Rating Agency (JCR) — A-

These reflect broader confidence in the Bank’s financial and operational resilience.

The termination of its relationship with Fitch highlights ongoing debates about how multilateral development banks, especially those with sovereign members and treaty-based protections, should be evaluated within the global credit rating ecosystem. Afreximbank’s move may prompt discussions on whether alternative or Africa-focused rating frameworks should be developed as part of broader efforts to ensure more context-aware evaluations.

Afreximbank’s latest financial reports show continued growth and strong performance metrics, including improvements in liquidity, capital adequacy and profitability, even amid global economic volatility. The Bank also plays a central role in advancing major continental initiatives such as the African Continental Free Trade Area (AfCFTA) and related financial infrastructure, including the Pan-African Payment and Settlement System (PAPSS).

Sign up to BitKE for the latest economic updates from across Africa.

Join our WhatsApp channel here.