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Why Afreximbank's break with Fitch exposes a deeper rift
For high-quality MDBs, Fitch often uses a "credit substitution" approach, anchoring the MDB's rating to the creditworthiness of its strongest shareholders.
In a recent public statement, the African Export-Import Bank (Afreximbank) announced it would terminate its credit rating relationship with Fitch Ratings. The rationale for this decision was particularly striking.
The bank attributed the move to its “firm belief that the credit rating exercise no longer reflects a good understanding of the Bank’s Establishment Agreement, its mission, or its mandate.”
