The African Peer Review Mechanism (APRM) has strongly criticised Fitch Ratings for downgrading the African Export-Import Bank (Afreximbank), calling the decision both “legally incongruent and analytically flawed”.
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Fitch recently downgraded Afreximbank’s long-term foreign currency issuer rating from ‘BBB’ to ‘BBB-’ with a negative outlook. The move was based on an estimated 7.1% non-performing loan ratio, pointing to Ghana, South Sudan, and Zambia as major contributors.
However, the APRM argues that Fitch misinterpreted the legal nature of Afreximbank’s sovereign lending. In a June 6 statement, the APRM explained that loans to member countries, including Ghana and Zambia, both founding members and shareholders, are governed by intergovernmental treaties, not commercial banking rules.
“It is inaccurate and legally unsound to classify these loans as non-performing,” APRM stated. “No formal default has occurred, and none of the sovereigns have repudiated their obligations.”
The mechanism warned that Fitch’s assessment could distort global perceptions of African-led financial institutions and undermine investor confidence. It also accused Fitch of wrongly interpreting ongoing repayment discussions as signs of imminent default.
“The assumption that Ghana and others intend to default undermines the spirit of the Afreximbank Treaty and is not supported by any official evidence,” the statement read.
APRM is urging Fitch to revise its rating methodology and engage directly with African institutions to ensure fair, context-aware credit evaluations.
“Transparent and intelligent assessments are essential for Africa’s fair treatment in global finance,” it concluded.
