Abuja----------------- Global credit rating agency, Fitch Ratings, has affirmed the African Development Bank’s AfDB, Long-Term Issuer Default Rating, IDR, at ‘AAA’ with stable outlook.
AfDB Communications and External Relations Department made this known in a statement in Abuja Tuesday.
The statement read, “the ‘AAA’ rating of the AfDB is driven by extraordinary support it receives from its shareholders, which Fitch Ratings assesses at ‘AAA’
“The Bank’s liquidity profile at ‘AAA’, reflecting an ‘excellent’ liquidity buffer and quality of liquid assets while the bank’s capitalisation is judged strong reflecting strong equity-to-assets ratio.
"We are delighted with the affirmation of the ‘AAA’ rating of the Bank with a stable outlook by Fitch Ratings, in spite the global and regional economic challenges from the COVID-19 pandemic.
“We will continue to strengthen our policy relevance to support regional member countries, especially during and after the period of COVID-19, while ensuring that we maintain our prudential ratios with adequate buffers.
“The Bank will continue to apply strong risk management. We are positive that African countries’ economies will recover as the pandemic subsides and Africa returns to a positive Gross Domestic Product growth trajectory.”
It further noted that the agency judged the Bank’s risk management policies as conservative and excellent in line with ‘AAA’ rated regional peers, just as the bank also,. noted that the rating agency assumed a 125 per cent in subscribed capital from 2021 as per the Bank’s 7th General Capital Increase plan approved in October 2019.
Commenting on the development, the President of the AfDB, Dr Akinwumi Adesina, expressed delight over the rating, saying it was a good development.