Afreximbank disputes Fitch Ratings’ decision to revise its outlook to negative, asserting its strong financial position and its robust legal structure shields it from the risks highlighted by the agency. This is in a bid to counter Fitch, in a 4 June report, citing concerns that debt owed to the bank by some African governments could be subject to restructuring, prompting the revised outlook.
In a statement, the bank emphasized its compliance with International Financial Reporting Standards, including IFRS 9, which guides loan performance classification. Afreximbank’s 2024 financial statements, supported by an external audit, detail these practices.
Fitch had cited concerns that debt owed by some African governments could be subject to restructuring, prompting the revised outlook.
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However, Afreximbank rejects this notion, stating that its treaty-based legal framework protects it from such risks. The bank’s establishment treaty, signed by 53 African states, provides binding protections and limits exposure to unilateral changes in borrower terms.
Afreximbank also disagreed with Fitch’s definition of non-performing loans (NPLs), which differs from its own approach that incorporates forward-looking information.
The bank insists that its loan treatment is governed by its treaty, not external classifications, and that debt restructuring would be inconsistent with its founding treaty. By emphasizing its strong financial position and legal framework, Afreximbank challenges Fitch’s negative outlook revision.
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