GCR upgrades Afreximbank’s rating to A-, outlook as stable

Global Credit Rating (GCR) has upgraded the African Export-Import Bank’s (Afreximbank) long-term international scale rating from BBB+ to A-. GCR also affirmed the Bank’s short-term rating at A2 and the outlook as stable.

In the announcement released in Johannesburg, South Africa, on Friday, the rating agency said that, in granting the upgrade, it acknowledged Afreximbank’s tenacity and resilience in managing risks in its operating environment, which was generally perceived to be high risk.

“The ratings on Afreximbank balances its significant exposure to high risk operating environments, fairly strong and diverse membership base, demonstrated preferential creditor treatment, strong status within the region and good track record of fulfilling mandate, beyond adequate current levels of capitalisation, strong risk position, stable funding and good liquidity position,” stated GCR.

According to agency, the new rating also captured the Bank’s key strength in structured trade finance which demonstrates its ability to de-risk its lending portfolio through high quality collateral comprising cash, insurance from highly-rated insurers, sovereign backed securities, assignment of receivables (which transfers repayment risk to OECD countries), amongst others.

“This upgrade confirms stakeholders’ deep confidence in Afreximbank’s compelling credit story, which is punctuated by hard work and an innovation culture,” said Afreximbank President Benedict Oramah, in reaction to the announcement. “Afreximbank is committed to continuing to develop and implement innovative risk management approaches in the management of its lending book and capital.”

Oramah described the upgrade as a major milestone in the Bank’s history and said that, coming half way into the implementation of the Bank’s current strategic plan, it supported the fulfilment of one of the overarching pillars of that plan, which was financial soundness, by positioning it to leverage competitive financial resources into the Africa.

Apart from enabling the Bank to competitively leverage international capital and having a positive impact on its reputation, the upgrade is expected to aid the Bank in rolling out its non-funded programmes, such as the Afreximbank Guarantee Programme, and to help it promote trade with reduced strain on capital. It will also help position the Bank to play a major role in the development of intra-African trade and in trade between Africa and the rest of the world.

Hope Moses-Ashike

Hope Moses-Ashike is an Associate Editor, Banking and Finance, with more than a decade of experience reporting on Nigeria’s financial system and broader economy. She closely tracks market movements, monetary policy decisions, company disclosures, regulatory actions, economic indicators, and global developments, and interprets what they mean for businesses, investors, policymakers, and households. Her reporting helps readers understand complex issues such as inflation trends, foreign exchange market dynamics, interest rate decisions, bank performance, and investment risks. She also covers major international events and periodically travels to Washington, D.C., to report on the World Bank/IMF Spring and Annual Meetings. Her dedication to financial journalism has earned her multiple recognitions and invitations to high-level professional development programmes. She is an alumna of the International Visitors Leadership Programme (IVLP) in the United States and holds an Advanced Financial Journalism Certificate from the Press Association Training in London, UK. Her other notable achievements include completing the Lagos Business School CMC Programme, the Bloomberg Media Africa Initiative Programme, and a Master Class in Journalism at Rhodes University in South Africa.