Adesina Thrilled as S&P Affirms AfDB’s Positive Ratings
Standard & Poor’s Global Ratings has affirmed its ‘AAA/A-1+’ long- and short-term issuer credit ratings on the African Development Bank .
S& P, in its latest rating on the bank dated June 19, which was obtained yesterday, noted that the bank’s policy importance was adjudged to be –very strong; governance and management was rated –adequate; financial risk profile – very strong; capital adequacy -very strong; funding and liquidity – strong.
“Regardless of the outcome of the independent review, we expect that shareholder support will remain robust, especially in light of the recently approved general capital increase. “We assume in the ratings that shareholder structure and composition, with 59 per cent of voting shares coming from regional members, are potentially vulnerable to agency risk, meaning the interests of borrowing members could differ from those of creditors.“This weighs on our governance assessment for AfDB.
According to S&P, the AfDB will play a key role supporting the region, particularly in the context of COVID-19, as the institution recently approved an up to $10 billion relief package for 2020, of which $6.9 billion would be financed by AfDB and the remainder through its concessional lending window.
“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 stated.
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S&P Affirms AfDB’s 'AAA/A-1+' Ratings - THISDAYLIVEBy Obinna Chima Standard & Poor’s (S&P) Global Ratings has affirmed its ‘AAA/A-1+’ long- and short-term issuer credit ratings on the African Development Bank (AfDB). The global rating agency also stated that the outlook of the Abidjan-based multilateral institution remains stable. S& P disclosed this in its latest rating on the bank dated June 19, …
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