Agusto & Co. upgrades the foreign currency rating of AFC to ‘Aa’ with a stable outlook.
The rating expires on 30 June 2022.
Agusto & Co. hereby assigns the ‘Aa’ (foreign currency), ‘S2’ (short-term foreign currency) and ‘Aaa’ (national) ratings to the Africa Finance Corporation. The ratings are hinged on the Corporation’s good asset quality, strong risk management framework, sustainable earnings, strong capitalisation, good liquidity and low leverage. The ratings also reflect the Corporation’s role in supporting Africa’s infrastructure development and the privileges it enjoys from its 32 member states, such as preferential access to foreign currency and preferred creditor status. These privileges help mitigate the foreign exchange and credit risks faced by the Corporation. However, the rating is constrained by the Corporation’s exposure to African countries which are vulnerable to political risks and are contending with significant economic risks as a result of the pandemic.