Afreximbank Dumps Fitch in Credit Rating Relationship

The African Export-Import Bank (Afreximbank) has formally ended its credit rating relationship with Fitch Ratings, in a move that underscores growing tension between African financial institutions and global rating agencies over how the continent’s development-focused banks are assessed.

In a statement released on Friday, Afreximbank explained that the decision followed a comprehensive internal review, which concluded that Fitch’s rating methodology no longer reflected the bank’s legal framework, mandate, and operational reality. The bank emphasized that the termination of the Fitch rating does not indicate any financial instability or weakness Afreximbank’s business profile remains strong, backed by robust shareholder support and legal protections embedded in its Establishment Agreement,” the statement read. “The Fitch rating process does not fully reflect the multilateral nature of the bank, nor its development-oriented mandate to promote intra-African trade and economic integration. This development comes in the aftermath of Fitch Ratings’ decision in June 2025 to downgrade Afreximbank’s long-term credit rating from ‘BBB’ to ‘BBB‑’ with a negative outlook. The downgrade sparked criticism from Afreximbank and African stakeholders, who argued that Fitch’s assessment failed to consider the bank’s treaty-based obligations with member states and its specialized mandate as a multilateral financial institution. Despite ending its relationship with Fitch, Afreximbank maintains investment-grade ratings from other major agencies, including Moody’s, Japan Credit Rating Agency (JCR), China Chengxin International (CCXI), and Global Credit Ratings (GCR). These ratings continue to affirm the bank’s financial resilience and solid governance framework. Afreximbank plays a pivotal role in financing and facilitating trade across Africa. It is a key driver of initiatives such as the Pan-African Payment and Settlement System (PAPSS), which supports seamless trade settlements under the African Continental Free Trade Agreement (AfCFTA), and a US$10 billion Adjustment Fund designed to enhance Africa’s participation in global trade. Experts note that the decision to end the relationship with Fitch highlights broader concerns about how global rating agencies evaluate African multilateral institutions. Analysts argue that traditional rating frameworks often fail to capture the unique legal and operational context of African development banks, leading to assessments that may not fully represent their financial stability or strategic importance. In its statement, Afreximbank reaffirmed its commitment to transparency, good governance, and continued engagement with investors and stakeholders. The bank also left open the possibility of engaging with other rating agencies in the future, signaling that it remains committed to maintaining international investor confidence. The move is likely to draw attention from global financial markets, where investors often rely on credit ratings to gauge the risk profile of institutions. While some may express caution in the absence of a Fitch rating, Afreximbank’s strong ratings from other agencies and its solid operational track record are expected to sustain market confidence. As Africa continues to pursue economic integration and boost intra-continental trade, Afreximbank’s role remains central. By financing trade, supporting infrastructure projects, and providing liquidity solutions, the bank aims to accelerate the continent’s development while fostering financial independence. The termination of the Fitch rating relationship signals a potential shift in how African multilateral banks interact with global credit assessment agencies and may fuel discussions around creating Africa-focused rating mechanisms better suited to reflect the unique mandates of development institutions.