· S&P Global, has affirmed ‘AAA/A-1+’ long- and short-term issuer credit assessment of the African Development Bank (AfDB).
· The assessment was based on the Bank’s very strong financial risk profile, capital adequacy, funding and liquidity, extraordinary shareholder support and adequacy of its governance and management
S&P Global, considered as the largest of the Big Three credit-rating agencies has affirmed ‘AAA/A-1+’ long- and short-term issuer credit assessment of the African Development Bank (AfDB) with a stable outlook. The rating agency stated that its positive assessment was based on the Bank’s very strong financial risk profile, capital adequacy, funding and liquidity, extraordinary shareholder support and adequacy of its governance and management.
S&P Global acknowledged the Bank’s $115 billion large capital increase, approved by shareholders in October 2019, and the replenishment to the African Development Fund, the Bank’s concessional window, in December 2019.
The Rating Agency’s statement explained that the stable outlook reflected its confidence that, over the next two years, AfDB will prudently manage its capital as well as maintaining solid levels of high-quality liquidity assets and robust funding. It also expressed the hope that AFDB will continue to receive support from shareholders in providing timely capital payments, and the Bank will continue benefiting from preferred creditor treatment (PCT) and prudently manage growth in private-sector lending in line with its mandate. The rating agency hoped that AfDB will play a key role in supporting the region, particularly in the context of COVID-19. The Bank has approved almost $10 billion relief package for 2020. About $6.9 billion of the package will be financed by AfDB and the remainder through its concessional lending window.
Welcoming the report, the President of the Bank, Akinwumi A. Adesina, said that the rating reflected the Bank’s very strong financial position, risk management skill, as well as its sound governance. He assured that the Bank will continue to strive and maintain these high standards.
