Fitch Ratings has downgraded Afreximbank’s long-term credit rating from BBB- to BB+, effectively pushing the African multilateral lender into junk status.
The downgrade and subsequent rating withdrawal, announced on January 23, 2026, followed a dispute between Fitch and the bank over the agency’s assessment of Afreximbank’s risk exposure and credit management practices.
The move reflects rising concern over the bank’s exposure to debt-distressed African nations, particularly Ghana, where a recent loan restructuring triggered fears of financial losses.
African Export-Import Bank (Afreximbank) officially terminated its credit rating relationship with Fitch Ratings, one of the world’s leading rating agencies.
What they are saying
Fitch’s downgrade placed Afreximbank in speculative-grade territory, sparking a sharp rebuttal from the bank over the rationale behind the move.
The agency also downgraded the short-term IDR to ‘B’ from ‘F3’, reflecting weaker short-term credit strength.
In addition, the bank’s medium-term note program and debt issuance were downgraded to BB+ from BBB before Fitch later withdrew Afreximbank’s ratings entirely.
- “The downgrade reflects heightened risks stemming from Afreximbank’s sovereign exposure, particularly following Ghana’s debt restructuring, which we believe raises questions about the bank’s credit protections,” Fitch stated in its release.
- “Our concerns focus on whether Afreximbank can maintain its preferred creditor status in the face of such restructurings, which may weaken its policy relevance,” the agency added.
- In response, Afreximbank said: “Fitch has chosen to ignore our unique legal status as a multilateral financial institution established by treaty. Its assessment misrepresents both our mission and mandate.”
- The bank further stated: “We have taken the decision to sever our relationship with Fitch Ratings, whose approach we find to be inconsistent with the operational realities of development finance in Africa.”
The conflicting views underscore the tension between traditional rating models and the operational realities of multilateral development banks in emerging markets.
Backstory
The road to downgrade began in June 2025 when Fitch lowered Afreximbank’s rating from BBB to BBB- and placed it on a negative outlook due to rising concerns over its sovereign loan book.
- Fitch highlighted risks associated with lending to countries like Ghana, Zambia, and South Sudan.
- Afreximbank insisted its operations are governed by a treaty with 53 African countries, giving its loans quasi-sovereign protection.
- The African Peer Review Mechanism supported Afreximbank’s stance, criticizing Fitch for ignoring legal safeguards.
- The situation worsened after Ghana restructured its loan, a move that Fitch saw as undermining the bank’s policy role.
These mounting tensions laid the groundwork for Fitch’s final decision to downgrade and exit.
What you should know
The downgrade to junk status and rating withdrawal marks a major development for Afreximbank, leaving only Moody’s among the major agencies still assessing the institution.
- Fitch withdrew its ratings on January 23, 2026, after lowering Afreximbank’s long-term IDR to BB+.
- Ghana’s loan restructuring was a key trigger, suggesting Afreximbank may have incurred losses.
- The downgrade also affected the bank’s short-term ratings and debt programs.
- Afreximbank rejected the assessment, saying Fitch misunderstood its mandate and misrepresented its credit strength.
The development could shape investor sentiment and financing terms for Afreximbank in the near future.
