Global rating agency, Fitch Ratings has affirmed African Development Bank’s Long-Term Issuer Default Rating (IDR), given the bank a triple rating of AAA with a stable outlook.
According to the agency, AfDB’s ‘AAA’ rating is driven by extraordinary support it receives from its shareholders, which Fitch Ratings assess at ‘AAA”.
“Fitch Ratings assessed the Bank’s liquidity profile at ‘AAA’, reflecting an ‘excellent’ liquidity buffer and quality of liquid assets”, while “the bank’s capitalization is judged strong reflecting strong equity-to-assets ratio.”
President, AfDB, Dr. Akinwumi Adesina, said the bank is delighted to have the credit rating despite the economic downturns and challenges due to the pandemic. He added that the bank will continue strengthening its policy “to support regional member countries, especially during and after the period of COVID-19, while ensuring that we maintain our prudential ratios with adequate buffers.”
He said the bank will continue its strong risk management policies, and is positive the economies in sub-Saharan African will recover and return to positive growth.
AfDB’s Vice President for Finance and Chief Finance Officer, Swazi Tshabalala, said, “The strong support of our shareholders will continue to be critical to allow the Bank to continue to play its leading role in supporting development in Africa”.
The new triple-A rating from Fitch for the bank comes after an earlier triple-A rating from ratings agency, Standard and Poor.