Nigeria: S&P Global Affirms AfDB's AAA Rating, With Stable Outlook

African Development Bank (AfDB) president Akinwumi Adesina (file photo).

Ratings agency S&P Global has affirmed its 'AAA/A-1+' long- and short-term issuer credit assessment of the African Development Bank (AfDB) with a stable outlook.

The rating agency positively assessed the bank's strong financial risk profile, very strong capital adequacy, strong funding and liquidity, extraordinary shareholder support and adequacy of its governance and management.

"We are therefore affirming our 'AAA' long-term issuer credit rating on the AfDB," S&P Global stated in a statement on Monday.

The rating agency noted the bank's $115 billion capital increase, approved by shareholders in October 2019, and the replenishment to the African Development Fund, the bank's concessional window, in December 2019.

"The stable outlook reflects our expectation that, over the next two years, AfDB will

prudently manage its capital while maintaining solid levels of high-quality liquidity assets and robust funding," the S&P Global statement added.

S&P expects that "shareholders will remain supportive by providing timely capital payments and the Bank will continue benefiting from preferred creditor treatment (PCT); and "prudently manage growth in private-sector lending in a way that's aligned with its mandate."

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