The African Export-Import Bank (Afreximbank) has terminated its credit rating relationship with Fitch Ratings, one of the world’s leading agencies, citing fundamental misalignment in evaluation methodology.
Afreximbank announced the decision in a statement on January 17, 2026, escalating a prolonged disagreement over how Fitch assesses its creditworthiness as a multilateral development institution.
The bank stated that Fitch’s framework no longer reflects a proper understanding of Afreximbank’s Establishment Agreement, its mission to support African economic growth, or its mandate as a policy-driven lender.
This issuer-led termination follows Fitch’s June 2025 downgrade of Afreximbank’s long-term rating from BBB to BBB- with a negative outlook, which the bank strongly contested.
Fitch cited increased sovereign loan exposures to borrowers like Ghana, South Sudan, and Zambia facing debt restructuring risks, alongside concerns over asset quality and transparency.
The agency estimated Afreximbank’s non-performing loans at 7.1 per cent, while Afreximbank reported 2.3 per cent, highlighting a key dispute over classification and IFRS 9 standards.
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Fitch argued that potential participation in restructurings could weaken Afreximbank’s preferred creditor status, a critical factor in multilateral risk assessment.
Afreximbank denied any involvement in sovereign restructurings, citing treaty protections, and defended its reporting as fully compliant and externally audited.
The downgrade reportedly raised Afreximbank’s borrowing costs, complicating access to affordable capital in international markets.
Sources indicated the decision stems from this impact, underscoring tensions between African institutions and global raters treating them like commercial lenders.
With Fitch’s coverage ended, Moody’s and S&P will bear greater weight, intensifying scrutiny of Afreximbank’s exposures and standards.
The move coincides with the African Union-backed African Credit Rating Agency (AfCRA) planning to issue ratings by early 2026 as a homegrown alternative.
AfDB Group Chief Economist Dr Yemi Kale previously criticised biased models inflating African borrowing costs despite improving outlooks.
Afreximbank remains financially sound and strategically vital, though the episode may constrain its global market flexibility.
This development reflects broader African efforts to assert control over credit narratives and reduce external biases in financial assessments.
