Afreximbank has responded to a recent ratings report by Fitch, which assigned the bank a “Negative” outlook. According to the agency, the downgrade was based on “the risk that debt owed to Afreximbank by certain sovereign borrowers may be subject to restructuring.”
“The decision by Fitch […] is based on a misinterpretation, shared in some circles, that the treaty establishing Afreximbank — signed by its 53 participating African states — could be breached by the Bank without consequences,” the institution stated.
Afreximbank highlighted that Fitch nevertheless acknowledged the Bank’s financial resilience, noting that “the Bank operates with a high level of collateral and credit risk mitigation mechanisms, and has already made substantial provisions on certain sovereign exposures, which would reduce any potential further negative financial impact on the Bank.”
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