Moody’s reaffirms AFC’s A3/P-2 credit rating with stable outlook
Africa Finance Corporation (AFC), a leading investment grade rated multilateral development finance institution and project developer, has been awarded an A3/P-2 , investment grade credit rating with a stable outlook by international ratings agency Moody’s for a third consecutive year.
According to Moody’s, this rating has been assigned to AFC because of its “sound capital adequacy, high liquidity, no non-performing loans and only a small impairment provision on its balance sheet.”
The rating takes into account AFC’s inevitable expansion over the next few years and also accounts for the natural risks of exposure to economic and political challenges which may impact the rating.
However, Moody’s also highlighted that AFC’s profitability metrics are high compared to those of its peers, providing substantial return on investment for its stakeholders.
Chief Executive Officer of AFC, Andrew Alli, commented on the announcement: “This last year, characterised by the global economic slowdown and weak commodities markets, has not been an easy one. AFC has done particularly well to retain its strong credit rating and maintain its status as one of the highest investment grade-rated multilateral financial institutions in Africa.
“This rating vindicates the quality of AFC’s work, the diversity of our asset portfolio and our ability to deliver a sound return to our investors. It will enable us to continue proactively financing and developing the infrastructure required to drive Africa’s economic development and improve the lives of the people living on the continent.”
To date the corporation has invested US$3.2 billion in projects across 25 African countries and in a wide range of sectors including power, telecommunications, transport and logistics, natural resources, and heavy industries.