The President of the African Development Bank (AfDB), Dr. Akinwumi Adesina has announced that the AAA rating from ratings agency, Moody’s, validates the strength of the bank’s prudent financial and risk management and strong governance systems.
Adesina disclosed this in an AfDB statement on Saturday titled: “Moody’s Investor Service Has Affirmed The African Development Bank’s AAA Credit Rating, With a Stable Outlook.”
What they are saying
Dr. Akinwumi Adesina, said the Triple A rating by Moody’s is a sign of the bank’s strength in prudent financial and strong governance systems and urged that the AfDB will continue its capital requirements to build African economies.
“The AAA rating by Moody’s validates the strength of the Bank’s prudent financial and risk management and strong governance systems even in the face of tough challenges imposed by the Covid-19 pandemic.
“The extraordinary support of the Bank’s shareholders boosts our capacity to finance African countries. We will continue to manage risks and capital requirements adequately to help African countries to build their economies back better and faster, while assuring economic, health, and climate resilience.”
Swazi Tshabalala, Acting Senior Vice President and Chief Finance Officer at the African Development Bank, pegged the ratings to the bank’s solid financial profile.
“Thanks to the solid backing of its shareholders and strong financial profile, the African Development Bank is rated triple-A with stable outlook by all the major international rating agencies.”
What you should know
The Multilateral bank has already achieved Triple A ratings from major ratings agencies this year.
Nairametrics reported in June that S&P Global, a rating agency, affirmed its ‘AAA/A-1+’ long- and short-term issuer credit assessment of the African Development Bank (AfDB) with a stable outlook.
In July, The African Development Bank’s (AfDB) Long-Term Issuer Default Rating (IDR) was rated AAA with a stable outlook by a global credit rating agency – Fitch.
Moody’s said in a credit analysis last month that AfDB’s credit profile is supported by robust capital buffers and excellent risk management.
“The credit profile of African Development Bank (AfDB) is supported by the bank’s robust capital buffers and superior risk management, which mitigate risks,” Moody’s said on October 27th.
“An ample liquidity buffer and unfettered access to international capital markets also support its ability to meet its debt-service obligations. Moreover, the bank has a long track record of being the premier development institution in Africa and benefits from shareholders’ ability and willingness to support its development objectives, exemplified by the significant contributions of highly rated non-regional member countries,” they added.
