Fitch affirms AfDB has stable outlook with triple-A
Global credit rating agency, Fitch Ratings, has affirmed the African Development Bank’s (AfDB) credit rating at ‘AAA’, with a stable outlook.
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 per centof total banking portfolio at end-2020,” Fitch said.
Bajabulile “Swazi” Tshabalala, Vice President for Finance and Chief Finance Officer of the African Development Bank, 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 capitalisation 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.”
Commenting on the Fitch ratings report, African Development Bank Group, President Dr. Akinwumi 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.”