S&P Global Ratings restored the African Export-Import Bank (Afreximbank) to investment grade with a BBB+ rating and a stable outlook, nearly 12 years after its last assessment.

The rating is one notch above Moody's Baa2 and comes months after Afreximbank severed ties with Fitch Ratings, accusing the agency of misjudging its mission following a downgrade to junk status amid disagreements over the bank's role in debt restructurings for Ghana and Zambia. Fitch subsequently withdrew its ratings entirely.

In a statement dated June 11, S&P cited Afreximbank's record as a countercyclical lender and its substantial shareholder support as rationale for its rating.

The lender's total assets, S&P noted, had expanded to $42.3-billion by end-2025, up from $7.1-billion in 2015. 

Credit ratings often guide the costs of capital for a borrower.

DEBATE OVER STATUS

Afreximbank has been at the centre of a debate over lenders' eligibility for "preferred creditor status" - commonly granted to multilateral institutions such as the International Monetary Fund and World Bank, which shields them from losses during sovereign debt restructurings.

Unlike those institutions, Afreximbank's mix of public and private shareholders complicates its claim to that status.

S&P said it did not incorporate preferred creditor status into its assessment on the grounds that Afreximbank provides almost 80% of its loans to private-sector entities.

However, it acknowledged that Afreximbank, alongside other institutions, had experienced prolonged payment arrears in recent years, notably following the defaults and debt restructurings in Ghana and Zambia.

S&P noted that Afreximbank said in December that it had come to an agreement with Ghana on its $750-million loan, but that the lender had not announced a resolution with Zambia.

The agency warned that further sovereign restructurings could weigh on Afreximbank's asset quality.

"The bank's exposure to sovereigns undertaking debt restructurings, particularly under the G20 Common Framework in recent years, poses a potential risk to the bank's asset quality should other sovereigns enter similar comprehensive restructurings," S&P said.