Fitch Ratings has downgraded the African Export-Import Bank (Afreximbank) amid concerns over its exposure to Ghana’s sovereign debt and subsequently withdrew the bank’s ratings.
The global credit rating agency lowered Afreximbank’s Long-Term Issuer Default Rating (IDR) to ‘BB+’ from ‘BBB-’ and its Short-Term IDR to ‘B’ from ‘F3’. The ratings on the bank’s global medium-term note programme and other debt instruments were similarly cut to ‘BB+’ from ‘BBB-’.
Fitch described the downgrade as a reflection of “medium” policy importance for Afreximbank, down from “low,” following the December 2025 announcement of a $750 million sovereign loan agreement with Ghana as part of the country’s broader debt restructuring. The move, Fitch noted, indicates that Afreximbank did not retain its preferred creditor status, traditionally a key safeguard for multilateral development banks.
The agency explained that the change also prompted a reassessment of Afreximbank’s business profile, which it now classifies as “high risk,” up from “medium risk,” largely due to the bank’s operating environment and governance challenges. “This reflects the bank’s exposure to high-risk markets with weak credit quality, low per capita income, and elevated political risk,” Fitch said.
A BB+ rating is considered non-investment grade, commonly referred to as “high-yield” or “junk,” signalling higher perceived risk for investors.
Fitch further said it chose to withdraw Afreximbank’s ratings for commercial reasons and will no longer provide analytical coverage of the bank.
The agency highlighted that Afreximbank’s downgrade was influenced by its Standalone Credit Profile (SCP) of ‘bb+’, which factors in a solvency assessment of ‘BBB+’ and a liquidity assessment of ‘A’. Fitch noted that while the bank remains strongly capitalised and maintains a diversified funding base, high credit and strategy risks weigh on its profile.
According to Fitch, Afreximbank’s solvency remains supported by strong capitalisation, a moderate usable capital-to-risk-weighted-assets ratio of 21 per cent at end-2024, and excellent internal capital generation. Its liquidity is underpinned by a high share of AA- to AAA-rated treasury assets and access to capital markets, including $2.1 billion in credit lines.
The agency also assessed shareholders’ ability to support the bank at ‘bb-’, noting that Egypt and Nigeria – Afreximbank’s two largest shareholders – had seen sovereign upgrades in April 2025, improving the bank’s average shareholder rating. Fitch said shareholder support has historically been strong, with ongoing capital injections and dividend reinvestments.
Despite these strengths, Fitch warned that Afreximbank now operates in a “high-risk” business environment with governance and strategy risks that justify its downgraded status.