Chinese Rating Agency Reaffirms Afreximbank’s AAA/Stable Rating
Cairo – China Chengxin International Credit Rating Co., Ltd (CCXI) has reaffirmed the AAA issuer credit rating of African Export-Import Bank (Afreximbank) (www.Afreximbank.com) with a stable outlook.
This strong rating reflects CCXI’s evaluation of Afreximbank’s strengths, including excellent strategic positioning, robust risk management systems, adaptability in business development, exceptionally strong profitability, prudent liquidity management, and a very high coverage ratio of current assets against short-term debts.
The rating agency indicated that it expects Afreximbank’s ratings to remain stable over the next 12 to 18 months, even when considering downside credit risks from the macroeconomic and operational environments impacting the Bank.
In response to the rating announcement, Denys Denya, Afreximbank’s Senior Executive Vice President, highlighted that the rating reaffirms the Bank’s systemic importance to Africa and its effective risk management practices.
Denya stated that it will enhance opportunities for funding diversification, especially in China’s Panda bond market, while supporting Afreximbank’s development mandate and facilitating trade between Africa and China.
He reiterated Afreximbank’s commitment to bolstering trade finance in Africa and the Caribbean, even in challenging times.
Denya emphasized that the Bank’s unwavering commitment to its member states and clients significantly contributed to its impressive rating.
He noted that the Chinese rating reinforces the Bank’s preferred creditor status among its 53 member states in Africa and 13 in the Caribbean.
Denya stated: “CCXI’s rating is a significant accomplishment amidst a challenging operating environment, showcasing Afreximbank’s systemic relevance to Africa and the Caribbean, which are our primary focus regions.”
He added that the rating reflects the bank’s resilience and will allow it to exploit the depth and breadth of the Panda market as it seeks to diversify its funding sources globally.
The CCXI rating is anticipated to spur greater support for Afreximbank’s funding initiatives in the Chinese market and enhance the Bank’s market presence and credit standing.
In April this year, Afreximbank successfully issued its landmark inaugural Panda bond in the China Interbank Bond Market, raising RMB 2.2 billion (US$303 million).
This issuance was notably successful, being oversubscribed and attracting high-quality investors, which underscored strong market confidence in the Bank’s credit profile.
This groundbreaking transaction not only provides Afreximbank with a new source of diversified funding in Chinese Renminbi but also sets a crucial benchmark for other African borrowers and represents a significant step in deepening financial cooperation between Africa and China.
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