Afreximbank's A-rating affirmed by Japan's JCR

Business
By Brian Ngugi | Aug 28, 2025

The Japan Credit Rating Agency (JCR) on Wednesday affirmed the African Export-Import Bank’s (Afreximbank) A-credit rating with a stable outlook, providing a vote of confidence for the Cairo-based lender just months after a controversial downgrade by Fitch Ratings.

The rating affirmation reflects JCR’s view of the pan-African multilateral bank's ‘strong strategic positioning’, robust risk management framework, consistent profitability, prudent liquidity policies and resilient capital base.

The agency also highlighted the bank's important role in supporting trade finance and economic development across Africa and the Caribbean.

The decision stands in contrast to a June 4 action by Fitch, which downgraded Afreximbank’s Long-Term Issuer Default Rating to 'BBB-' from 'BBB' and assigned a Negative Outlook.

Fitch said its move was driven by a revision of its solvency assessment, citing 'high' credit risks and 'weak' risk management policies, and a calculated non-performing loan (NPL) ratio that exceeded its 6 per cent threshold.

JCR stated it expects Afreximbank’s rating to remain stable over the next 12 to 18 months, despite external macroeconomic challenges.

In reaction to the announcement, Afreximbank’s Senior Executive Vice President, Denys Denya, said the affirmation reinforces the bank’s credibility in global markets.

“JCR’s rating underscores our strong fundamentals and prudent risk management practices,” Denya said, adding, “It strengthens our ability to diversify our funding sources, including tapping into Japan’s capital markets.”

The JCR affirmation is expected to bolster investor confidence and support the bank’s efforts to expand its global funding base.

It follows Afreximbank’s successful inaugural Samurai bond issuance in Japan in 2024, which raised 81.3 billion yen ($530 million) from Japanese institutional investors.

The stable outlook from JCR suggests a differing analytical view from Fitch, particularly regarding the bank's risk management and asset quality, and may provide reassurance to stakeholders concerned by the earlier adverse assessment.

Afreximbank the multilateral financial institution with a mandate to finance and promote intra- and extra-African trade, has signed a multibillion-dollar deal with Kenya to promote trade and investments in the country by, in part, catalysing industrial parks.

The Bank’s total assets and guarantees stood at over $40.1 billion as of December 2024.

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