The African Export-Import Bank (Afreximbank) has formally terminated its credit rating relationship with global agency Fitch Ratings, marking a rare public break between a major multilateral development bank and an established credit evaluator.
The decision, announced on 23 January 2026, reflects escalating tensions over how the institution’s creditworthiness and legal framework are assessed.
Afreximbank, a Cairo-headquartered Pan-African financial institution charged with financing and promoting intra- and extra-African trade, said in a statement that its review of the relationship with Fitch concluded that the agency’s credit assessments “no longer reflect a good understanding of the Bank’s Establishment Agreement, its mission and its mandate.”
The bank, which has more than 30 years of experience in trade finance across Africa, emphasized that the move does not undermine its operational profile.
It noted that strong shareholder relationships and legal protections enshrined in its Establishment Agreement continue to underpin its business outlook.
The break with Fitch comes after a contentious downgrade in June 2025, when the agency lowered Afreximbank’s long-term issuer default rating to BBB-, just one notch above “junk” status, while assigning a negative outlook to the bank’s credit profile.
Fitch cited perceived “high credit risks” and “weak risk-management practices” as drivers of its action.
Afreximbank responded vigorously at the time, arguing that Fitch’s interpretation of its sovereign exposures and risk profile was flawed.
It maintained that its loan classification and risk frameworks, compliant with International Financial Reporting Standards (IFRS 9), provide an accurate reflection of financial performance and resilience.
A contested point has been the bank’s so-called “preferred creditor status,” a designation that can shield a lender’s claims in sovereign debt restructurings.
Fitch and other rating agencies have raised doubts about the clarity and enforceability of such status for multilateral institutions like Afreximbank with mixed public and private ownership structures.
Afreximbank asserts that its founding treaty, ratified by its member states, affords legally binding protections that should be factored into credit assessments.
Rating agencies, including Moody’s and Global Credit Rating Company (GCR), continue to rate Afreximbank positively, with Moody’s assigning a Baa2 rating and GCR assigning an A on the international scale.
Other agencies such as China Chengxin International and Japan Credit Rating Agency (JCR) also maintain investment-grade scores for the bank.
Analysts say the dispute shines a spotlight on the complexities of assessing creditworthiness for multilateral development banks, particularly those focused on emerging markets and economically vulnerable regions.
Traditional rating methodologies may struggle to account for unique legal frameworks, political mandates, and long-term developmental roles embedded in institutions like Afreximbank.
The issue of preferred creditor status has become especially salient. In recent sovereign debt restructurings, including high-profile cases involving Ghana and Zambia, debates over whether multilateral lenders receive priority in repayments have surfaced, challenging conventional risk models.
Ghana’s recent resolution of a dispute with Afreximbank over a $750 million facility brought these complexities into sharper relief, with official creditor support helping to clear the final hurdle in its restructuring process.
Afreximbank plays a central role in financing African trade and economic integration. It has been a key supporter of the African Continental Free Trade Area (AfCFTA), deploying innovative instruments and infrastructure such as the Pan-African Payment and Settlement System (PAPSS) to facilitate cross-border commerce.
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