Global rating agency, Standard & Poor’s (S&P), has assigned an ‘A’ long-term and ‘A-1’ short-term credit rating to Africa Finance Corporation (AFC), with a positive outlook. The rating reflects confidence in AFC’s strategy to expand its capital base and strengthen liquidity while gradually diversifying its shareholder structure.
S&P said the positive outlook is anchored on expectations that AFC will attract more sovereign shareholders and raise additional equity. However, the agency warned that failure to diversify ownership or a drop in capital and liquidity levels could lead to a revision of the outlook or a downgrade.
According to S&P, AFC’s strong ratings are supported by its solid enterprise and financial risk profiles, robust asset quality and very strong liquidity coverage. The corporation plays a key role in financing critical infrastructure across Africa, including power, transport, natural resources, telecommunications and technology.
Despite its strengths, S&P noted that AFC’s shareholder base remains highly concentrated, with Nigerian institutions holding about 75 per cent of shares. Since inception, AFC has disbursed $18.5 billion across 36 African countries, reinforcing its strategic importance.
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