logo

S&P Global affirms African Development Bank’s AAA rating with stable outlook

PUBLISHED: Mon, 01 Feb 2021 19:29:15 GMT

Share

Content provided by APO Group. CNBC Africa provides content from APO Group as a service to its readers, but does not edit the articles it publishes. CNBC Africa is not responsible for the content provided by APO Group.
Download logo

Ratings agency S&P Global has affirmed its “AAA/A-1+” foreign currency issuer credit rating of the African Development Bank (www.AfDB.org) with a stable outlook.

The ratings agency said its outlook reflected the expectation that the African Development Bank (AfDB) would, over the next two years, “prudently manage its capital while maintaining solid levels of high-quality liquidity assets and a robust funding profile. We also assume extraordinary shareholder support to the bank will remain unchanged.”

In a letter, dated 29 January 2021, S&P Global Ratings noted the Bank’s $115 billion capital increase, approved by its shareholders in October 2019.

S&P said: “Our ratings on AfDB reflect its important role in Africa, marked by a long track record of fulfilling its policy mandate through economic cycles, combined with robust shareholder support. In October 2019, the bank’s shareholders approved its seventh general capital increase (GCI-VII), effectively increasing the bank’s capital base by $115 billion … to $208 billion.”

The ratings agency added: “We expect the capital increase will enable AfDB to continue expanding its reach, particularly in light of the renewed focus on infrastructure financing and private-sector lending. The bank has already been growing steadily over the years. The bank is in a good position to support increasing mobilization efforts and crowd-in additional private-sector funds.”

African Development Bank President Dr. Akinwumi Adesina said: “The AAA rating by S&P Global Ratings affirms our prudent financial and risk management at the African Development Bank, and our strong governance systems. We have been able to maintain our high standards despite the tremendous challenges posed by the ongoing COVID-19 pandemic. We are grateful for the steadfast and extraordinary support of our shareholders. The Bank remains committed to providing African countries with needed financing support to recover from the health crisis and to strongly grow back their economies, while managing our risk and capital requirements.”

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

Media Contact: Amba Mpoke-Bigg Communication and External Relations Department African Development Bank Email: a.mpoke-bigg@afdb.org

About the African Development Bank Group: The African Development Bank Group (AfDB) (www.AfDB.org) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 44 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org


Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent. Sign up here.

RELATED