Rating Release

Agusto & Co. hereby upgrades the national scale ratings assigned to Shelter Afrique Development Bank to “Aaken” and “Aa+ngr” with a stable outlook. 

The rating expires on 30 June 2027. 

Agusto & Co. hereby upgrades the national scale ratings assigned to Shelter Afrique Development Bank (“Shelter Afrique”, “SHAFDB” or “the Bank”) to “Aaken” and “Aa+ngr” with a stable outlook. The upgrades reflect SHAFDB’s successful attainment of a treaty-based status in 2025 after exceeding the required ratification threshold for its establishment, achieving a key positive rating driver. This milestone is expected to strengthen the Bank’s preferred creditor status (PCS), improve the predictability of member state capital contributions, and support a stronger equity position over the medium term. The expected capital enhancement is further supported by the Arab Bank for Economic Development in Africa’s (BADEA) approved US$120 million facility, which member states could access to finance their capital contributions and thereby drive SHAFDB’s strategic growth initiatives. In addition, governance has strengthened through the revised Board Charter and ESG integration, while the Mauritius-based Purpose Trust and SPV support structured NPL resolution, legal ring-fencing of impaired assets, and potential future capital relief.

The ratings also reflect Shelter Afrique’s ownership by 44 African sovereign governments, its strategic mandate to support affordable housing across Africa, and its low leverage and adequate capitalisation. However, the ratings remain constrained by weak profitability and below-average asset quality ratios, reflecting the continued impact of legacy delinquent loans in the review year.