Global rating agency, Moody’s Investor Service, has affirmed African Development Bank’s AAA credit rating, with a stable outlook.
This latest development is boost for the profile of the president of the bank, Akinwumi Adesina, whose aspiration to contest for a second term was almost marred by the United States, when it failed to accept the verdict of ‘not guilty’ passed by the Bank’s Ethics Committee of the Board of Directors, following allegations of misconduct levelled against him by some whistleblowers within the organisation.
According to Moody, “The credit profile of African Development Bank (AfDB) is supported by the bank’s robust capital buffers and superior risk management, which mitigate risks,” Moody’s Investor Service said in an annual credit analysis dated 27 October 2020.
Moody’s added: “An ample liquidity buffer and unfettered access to international capital markets also support its ability to meet its debt-service obligations. Moreover, 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 significant contributions of highly rated non-regional member countries.”
Dr. Akinwumi Adesina, President of the African Development Bank, said: “The AAA rating by Moody’s validates the strength of the Bank’s prudent financial and risk management and strong governance systems even in the face of tough challenges imposed by the Covid-19 pandemic. The extraordinary support of the Bank’s shareholders boosts our capacity to finance African countries. We will continue to manage risks and capital requirements adequately to help African countries to build their economies back better and faster, while assuring economic, health and climate resilience”.
Swazi Tshabalala, Acting Senior Vice President, Finance and Chief Finance Officer at the African Development Bank, said: “Thanks to the solid backing of its shareholders and strong financial profile, the African Development Bank is rated triple-A with a stable outlook by all the major international rating agencies”.
The ‘AAA’ rating from Moody’s follows earlier affirmations of the ‘AAA’ rating of the Bank, with stable outlook, by the other leading rating agencies, namely Fitch Ratings, Standard and Poor’s Global Ratings and Japan Credit Rating Agency.