Saturday, November 23, 2024
spot_img
spot_img
HomeBusinessEconomyAfrican Development Bank’s AAA rating, with stable outlook

African Development Bank’s AAA rating, with stable outlook

NEW YORK, USA – Ratings agency S&P Global on Friday affirmed its ‘AAA/A-1+’ long- and short-term issuer credit assessment of the African Development Bank (AfDB) with a stable outlook.

The rating agency 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 stated.

The rating agency noted the Bank’s $115 billion capital increase, approved by shareholders in October 2019, and the replenishment to the African Development Fund, the Bank’s concessional window, in December 2019.

“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,” S&P Global said in a statement.

S&P expects that “shareholders will remain supportive by providing timely capital payments”; the Bank “will continue benefiting from preferred creditor treatment (PCT); and “prudently manage growth in private-sector lending in a way that’s aligned with its mandate.”

The rating agency’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.”

The president of the Bank, Akinwumi A. Adesina, said: “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.”

spot_img
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

spot_img
spot_img
spot_img

Caribbean News

ILO – Suriname’s discusses just transition progress

PARAMARIBO, Suriname, (ILO News) - Advancements towards strengthening entrepreneurship, formalization and a just transition for the benefit of workers and businesses in Suriname was...

Global News

G20 economies should target reforms to boost medium-term growth prospects

By Paula Beltran Saavedra, Nicolas Fernandez-Arias, Chanpheng Fizzarotti, and Alberto Musso For most Group of Twenty economies, growth is poised to weaken over the next five years...