Fitch Rankings, the international credit ranking company, has verified the African Development Bank’s (AfDB) (www.AfDB.org) Long-Term Issuer Default Ranking (IDR) at ‘AAA’, with a steady outlook.
According to the agency, “the ‘AAA’ ranking of the AfDB is driven by amazing assistance it receives from its investors, which Fitch Rankings evaluate at ‘aaa'”. It evaluated the Bank’s threat management policies as conservative and outstanding in line with ‘AAA’ ranked local peers.
Fitch Scores examined “the Bank’s liquidity profile at ‘aaa’, showing an ‘outstanding’ liquidity buffer and quality of liquid assets”, while “the bank’s capitalization is judged strong showing strong equity-to-assets ratio”.
The score company “presumes a 125% in subscribed capital from 2021 according to the Bank’s 7th General Capital Increase plan approved in October 2019”, keeping in mind that it “expects all non-regional investors will make their first payments before October 2021”.
In April 2020, the Bank’s Board of Directors approved a group-wide approximately US$ 10 billion COVID-19 Reaction Center to be made readily available to current customers to relieve the economic effect of the COVID-19 crisis.
Discussing the advancement, Dr. Akinwumi Adesina, President of the African Advancement Bank stated, “We are delighted with the affirmation of the ‘AAA’ ranking of the Bank, with a steady outlook, by Fitch Rankings, in spite of the global and local financial difficulties from the COVID-19 pandemic. We will continue to enhance our policy relevance to support local member countries, specifically throughout and after the period of COVID-19, while ensuring that we preserve our prudential ratios with appropriate buffers”.
“The Bank will continue to apply strong threat management. We are positive that African nations’ economies will recover as the pandemic subsides and Africa go back to a favorable GDP development trajectory,” Adesina included.
“The strong support of our investors will continue to be important to enable the Bank to continue to play its leading role in supporting advancement in Africa,” said Swazi Tshabalala, the Vice President for Finance and Chief Finance Officer at the African Advancement Bank.
The ‘AAA’ score with a stable outlook of the African Development Bank by Fitch Scores follows an earlier affirmation of the ‘AAA’ ranking of the Bank, with a steady outlook, by Standard and Poor’s International Scores.