African Development Bank, AfDB, has bagged S&P Global AAA/A-1+’ rating on long and short term credit assessment rating with a stable outlook.
The rating agency on Friday, June 19, positively assessed the bank’s very strong financial risk profile, very strong capital adequacy, strong funding and liquidity, extraordinary shareholder support and adequacy of its governance and management.
“We are therefore affirming our ‘AAA’ long-term issuer credit rating on the AfDB,” S&P Global said.
“The stable outlook reflects our expectation that, over the next two years, AfDB will prudently manage its capital while maintaining solid levels of high-quality liquidity assets and robust funding,” stated S&P Global.
The agency believes that shareholders would remain supportive by providing timely capital payments and that the Bank would continue benefiting from preferred creditor treatment (PCT); and “prudently manage growth in private-sector lending in a way that’s aligned with its mandate.”
S&P Global’s report further noted that the “AfDB will play a key role supporting the region, particularly in the context of COVID-19. The institution approved an up to $10 billion relief package for 2020, of which $6.9 billion will be financed by AfDB and the remainder through its concessional lending window.”
“We are delighted with and welcome S&P Global’s decision to affirm the Bank’s AAA/A-1+ rating. It reflects the bank’s very strong financial position and risk management, as well as our sound governance. We will continue to maintain these standards, with the strong support of all our shareholders, as we deliver much needed financial, knowledge and policy support to our regional member countries during and after this period of the COVID-19 pandemic,” stated Akinwunmi Adesina, the President of the bank.
The African Development Bank Group 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 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states.
