The AfricaBrief

Share this post
S&P Global affirms African Development Bank’s AAA rating with stable outlook
africabrief.substack.com

S&P Global affirms African Development Bank’s AAA rating with stable outlook

In a letter, dated 29 January 2021, S&P Global Ratings noted the Bank’s $115 billion capital increase, approved by its shareholders in October 2019

Winston Mwale
Feb 2, 2021
Share this post
S&P Global affirms African Development Bank’s AAA rating with stable outlook
africabrief.substack.com

Ratings agency S&P Global has affirmed its “AAA/A-1+” foreign currency issuer credit rating of the African Development Bank (www.AfDB.org) with a stable outlook.

The ratings agency said its outlook reflected the expectation that the African Development Bank (AfDB) would, over the next two years, “prudently manage its capital while maintaining solid levels of high-quality liquidity assets and a robust funding profile. We also assume extraordinary shareholder support to the bank will remain unchanged.”

In a letter, dated 29 January 2021, S&P Global Ratings noted the Bank’s $115 billion capital increase, approved by its shareholders in October 2019.

S&P said: “Our ratings on AfDB reflect its important role in Africa, marked by a long track record of fulfilling its policy mandate through economic cycles, combined with robust shareholder support. In October 2019, the bank’s shareholders approved its seventh general capital increase (GCI-VII), effectively increasing the bank’s capital base by $115 billion ... to $208 billion.”

The ratings agency added: “We expect the capital increase will enable AfDB to continue expanding its reach, particularly in light of the renewed focus on infrastructure financing and private-sector lending. The bank has already been growing steadily over the years. The bank is in a good position to support increasing mobilization efforts and crowd-in additional private-sector funds.”

African Development Bank President Dr. Akinwumi Adesina said: “The AAA rating by S&P Global Ratings affirms our prudent financial and risk management at the African Development Bank, and our strong governance systems. We have been able to maintain our high standards despite the tremendous challenges posed by the ongoing COVID-19 pandemic. We are grateful for the steadfast and extraordinary support of our shareholders. The Bank remains committed to providing African countries with needed financing support to recover from the health crisis and to strongly grow back their economies, while managing our risk and capital requirements.”

Share

Comment
Share
Share this post
S&P Global affirms African Development Bank’s AAA rating with stable outlook
africabrief.substack.com

Create your profile

0 subscriptions will be displayed on your profile (edit)

Skip for now

Only paid subscribers can comment on this post

Already a paid subscriber? Sign in

Check your email

For your security, we need to re-authenticate you.

Click the link we sent to , or click here to sign in.

TopNewCommunity

No posts

Ready for more?

© 2022 The AfricaBrief, Lilongwe, Malawi
Privacy ∙ Terms ∙ Collection notice
Publish on Substack Get the app
Substack is the home for great writing