S&P lowers Afreximbank

Standard & Poor’s said it lowered the long-term issuer credit rating on African-Export Import Bank (Afreximbank) to BB+ from BBB- and its short-term rating to B from A-3.

The ratings also were removed from CreditWatch, where they were placed with negative implications June 13, S&P said.

The outlook is stable.

The agency also said it lowered the rating on the bank’s senior unsecured debt to BB+ from BBB- and removed the rating from CreditWatch negative.

Afreximbank’s capital adequacy remains weak when compared to peers and its financial profile has declined to adequate from strong, S&P said,

The bank’s ability to endure unexpected losses has materially decreased and compares only modestly with peers, the agency said.

Its proximity to its own debt financial covenant limits has been steadily narrowing, increasing liquidity risk, S&P added.

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