Standard & Poor’s has affirmed its ‘AAA/A-1+’ foreign currency issuer credit rating of the African Development Bank with a stable outlook.
This was contained in a statement by the AfDB.
It said, “S&P Global Ratings noted the bank’s $115bn capital increase, approved by its shareholders in October 2019.”
According to the statement, the ratings agency’s outlook reflected the expectation that the 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.”
S&P was further quoted as saying, “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 $115bn…to $208bn.
“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.”
Speaking on the development, AfDB’s President, Dr. Akinwumi
“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.”
Get real time update about this post categories directly on your device, subscribe now.
