By Ntando Thukwana.
African Export-Import Bank President George Elombi shrugged off Fitch Ratings’ downgrade of the lender’s credit to junk, saying its finances remain solid and it will continue to support government policy priorities.
“If we continue to invest in African countries, then the policy relevance remains,” Elombi said on the sidelines of the signing of an $11 billion support package for South Africa on Wednesday “Our treasury remains extremely solid, and the rating agencies say so themselves.”
Last month, Fitch cut the Cairo-based lender’s long-term issuer default rating to BB+ from BBB-, citing a revision of Afreximbank’s policy-importance risk “to medium” from “low.” The decision came after it appeared to take losses on a $750 million facility with Ghana as part of the nation’s broader debt restructuring.
Afreximbank severed ties with Fitch on January 23 after months of disagreement over the agency’s assessment of credit risks tied to sovereign debt reworks that have entangled the lender.
“The agenda is to continue to invest, raise the capital, put it in the African private processing sector, create more wealth,” Elombi said. “If we create more wealth in our continent, we wouldn’t have to worry about anyone else.”