- China affirms Afreximbank’s AAA credit rating with stable outlook
- Rating strengthens the Bank’s position in Chinese markets
China Chengxin International Credit Rating Co. (CCXI) has reaffirmed the African Export-Import Bank’s (Afreximbank) AAA issuer credit rating with a stable outlook.
The Chinese rating agency highlighted Afreximbank’s strong positioning, robust risk management, prudent liquidity policies and “very strong profitability.” It also noted that the Bank’s high coverage ratio of current assets to short-term debt provides a solid buffer against market volatility.
CCXI said it expected the rating to remain stable over the next 12 to 18 months despite downside risks from global macroeconomic conditions and Africa’s operating environment.
Systemic relevance for Africa and beyond
Denys Denya, Afreximbank’s Senior Executive Vice President, said the rating validated the Bank’s systemic role on the continent and its prudent financial strategy.
“CCXI’s rating is a remarkable achievement amid a challenging operating environment, and it is a demonstration of Afreximbank’s systemic relevance to Africa and the Caribbean, our key focus regions,” Denya said.
He added that the affirmation would boost Afreximbank’s ability to diversify its funding sources, particularly in China’s Panda bond market. “The rating exemplifies our resilience and will enable us to leverage the breadth and depth of the Panda market as we expand globally,” Denya said.
Denya also stressed the Bank’s “unwavering” commitment to its 53 African and 13 Caribbean member states, saying its track record during crises had reinforced its preferred creditor status.
Panda bond success boosts profile
The CCXI rating comes after Afreximbank’s successful debut in the Chinese bond market earlier this year. In April, the Bank issued its inaugural Panda bond in the China Interbank Bond Market, raising RMB 2.2 billion ($303 million).
The issue was oversubscribed and drew high-quality investors, which Afreximbank said reflected “strong market confidence” in its credit profile. The transaction marked the first such issuance by a pan-African lender and set a benchmark for other African borrowers seeking access to Chinese capital.
Analysts say the rating will galvanise further support for Afreximbank’s future funding plans in China while strengthening its international presence. The Bank sees the Panda bond market as a critical channel for deepening Africa-China financial cooperation and broadening its investor base in emerging markets.
