Moody’s affirms AfDB’s rating

Global ratings agency Moody’s Investor Service has affirmed the African Development Bank’s (AfDB’s) AAA credit rating, with a stable outlook.

In an annual credit analysis, Moodys said AfDB’s credit profile is supported by robust capital buffers and superior risk management, which mitigate risks.

“An ample liquidity buffer and unfettered access to international capital markets also support its ability to meet its debt-service obligations,” said the ratings agency.

“The bank has a long track record of being the premier development institution in Africa and benefits from shareholders’ ability and willingness to support its development objectives, exemplified by the contributions of highly rated non-regional member countries.”

AfDB President Akinwumi Adesina said the AAA rating by Moody’s validated the strength of the bank’s prudent financial and risk management and strong governance systems in the face of challenges imposed by Covid-19.

He said the extraordinary support of the bank’s shareholders boosts its capacity to finance African countries. “We will continue to manage risks and capital requirements adequately to help African countries to build their economies back,” he noted.