African Export-Import Bank (Afreximbank) has been restored to investment grade by S&P Global Ratings nearly 12 years after its last assessment, citing the entity’s countercyclical lending record and strong shareholder support.
The BBB+ rating with a stable outlook is one notch above Moody’s Baa2 and comes months after Afreximbank severed ties with Fitch Ratings, accusing the agency of misjudging its mission following a downgrade to junk status amid disagreements over the bank’s role in debt restructurings for Ghana and Zambia.
Fitch subsequently withdrew its ratings entirely and flagged governance concerns.
Announcing its decision, S&P said in a statement on Thursday that Afreximbank’s record as a countercyclical lender and its substantial shareholder support served as rationale for its rating.
The lender’s total assets, S&P noted, had expanded to $42.3 billion by end-2025, up from $7.1 billion in 2015.
Credit ratings often guide the costs of capital for a borrower.
Afreximbank has been at the centre of a debate over lenders’ eligibility for “preferred creditor status” – commonly granted to multilateral institutions such as the International Monetary Fund and World Bank, which shields them from losses during sovereign debt restructurings.
Unlike those institutions, Afreximbank’s mix of public and private shareholders complicates its claim to that status.
S&P said it did not incorporate preferred creditor status into its assessment on the grounds that Afreximbank provides almost 80% of its loans to private-sector entities.
However, it acknowledged that Afreximbank, alongside other institutions, had experienced prolonged payment arrears in recent years, notably following the defaults and debt restructurings in Ghana and Zambia.
S&P noted that Afreximbank said in December that it had come to an agreement with Ghana on its $750 million loan, but that the lender had not announced a resolution with Zambia.
The agency warned that further sovereign restructurings could weigh on Afreximbank’s asset quality.
Cairo-headquartered Afreximbank did not immediately respond to a request for comment.
Fitch, in its January downgrade and withdrawal notice, said Afreximbank’s reporting of the performance of loans was weaker than peers, leading it to assess the quality of governance as a “high” risk.
It also said a high share of capital ownership by borrowing countries with weak credit fundamentals had created pressure to increase lending at the expense of prudent growth objectives.
Afreximbank said at the time its business profile remained robust, underpinned by strong shareholder relationships and the legal protections embedded in its establishment agreement.
S&P’s assessment described Afreximbank’s governance and management as “adequate”, saying the inclusion of two independent directors and the African Development Bank as a permanent board member provided institutional oversight.
It noted that while increasing participation of private-sector investors through Class D shares could influence the bank’s risk appetite, Class A shareholders retained veto rights over big institutional changes, balancing potential risk.