The Japan Credit Rating Agency (JCR) has reaffirmed the African Export-Import Bank’s (Afreximbank) long-term issuer credit rating at A- with a stable outlook, signaling continued global confidence in the African trade finance institution despite recent downgrades by Western rating giants.
The latest assessment marks a sharp contrast to recent moves by Fitch Ratings and Moody’s Investors Service, both of which cut Afreximbank’s credit standing earlier this year, citing rising operational risks and asset quality concerns.
In its statement, JCR pointed to Afreximbank’s strong strategic role in Africa’s economic development, its robust risk management practices, and a solid capital and liquidity profile.
The agency highlighted the bank’s unique mandate to support trade finance and development across Africa and the Caribbean, noting that its operations remained resilient even amid global headwinds.
According to JCR, the bank’s fundamentals justified a stable outlook over the next 12 to 18 months, even though macroeconomic challenges such as inflationary pressures, high global interest rates, and regional geopolitical risks may pose hurdles.
Reacting to the development, Mr. Denys Denya, Afreximbank’s Senior Executive Vice President, said the reaffirmation underscored the institution’s credibility in global markets and its systemic importance to Africa.
“JCR’s rating reinforces our strong fundamentals and prudent risk management practices,” Denya said.
“It strengthens our ability to diversify our funding sources, including tapping into Japan’s capital markets, to advance our mandate of promoting and financing intra-African and extra-African trade.”
He added that Afreximbank’s consistency, even during turbulent times, has been key to maintaining its standing among international investors.
“This rating is a testament to our resilience and strategic focus. It enables us to mobilise resources to drive trade and development in Africa and the Caribbean,” he noted.
The affirmation comes against the backdrop of two significant downgrades from other global rating agencies in recent months.
Fitch Ratings, on June 4, 2025, cut Afreximbank’s rating by one notch to just above junk status and assigned a negative outlook, effectively signaling that further downgrades were possible.
About four weeks later, Moody’s Investors Service followed suit, lowering Afreximbank’s credit rating from Baa1 to Baa2.
The agency also flagged weaker-than-expected asset performance and warned of tighter funding access for the bank.
While these downgrades raised concerns about the bank’s cost of borrowing and investor perception, JCR’s stance provides a counterbalance that could reassure stakeholders in Asia and beyond.
Analysts note that JCR’s affirmation is particularly strategic for Afreximbank as it looks to expand its funding footprint in Asian markets, especially in Japan, where investors pay close attention to local rating agencies.
By maintaining an A- rating with a stable outlook, JCR effectively positions Afreximbank as a credible borrower in the Japanese capital market, a move that could open up new financing avenues for trade and infrastructure projects across Africa.
Headquartered in Cairo, Egypt, Afreximbank has grown into one of Africa’s most critical financial institutions. The bank plays a vital role in:
Facilitating intra-African trade under the African Continental Free Trade Area (AfCFTA).
Providing trade finance solutions to businesses and governments.
Supporting crisis resilience, such as during the COVID-19 pandemic when it provided billions in liquidity support.
Financing infrastructure and industrialisation projects across the continent.
In recent years, the bank has also extended its reach to the Caribbean Community (CARICOM), broadening its mandate beyond Africa.
While global rating downgrades may raise the bank’s cost of capital in Western markets, JCR’s stable outlook is expected to provide balance and maintain investor confidence in Asia.
Financial experts argue that this split in ratings illustrates a broader debate on how global institutions evaluate African risks, with some analysts suggesting that Western agencies often take a more conservative view of emerging markets.
For Afreximbank, the latest rating provides a cushion to pursue its 2025–2030 strategic plan, which focuses on boosting trade integration, enhancing capital mobilisation, and driving industrialisation across member states.
As Denya concluded: “Our mission remains clear – to promote trade and development across Africa.
This rating is an endorsement of our resilience and our determination to continue serving as a dependable financial partner to our member states.”