Africa’s ratings watchdog has warned that Fitch risks misleading investors by continuing to assess Afreximbank after the lender cut formal ties.
The African Export-Import Bank announced the split last week, saying it had lost confidence in the quality of Fitch’s analytical approach.
The African Peer Review Mechanism, an African Union body, said on Monday it considered the bank’s decision justified and necessary.
It warned that any future Fitch ratings would be unsolicited and non-participatory, potentially distorting how investors view Afreximbank’s true risk.
Fitch declined to comment on the watchdog’s statement, maintaining public silence as the dispute echoes across Africa’s financial landscape.
The standoff follows Fitch’s June downgrade of Afreximbank to one notch above junk status, alongside a negative outlook warning.
Fitch cited high credit risks and weak risk-management policies, casting a long shadow over the trade-focused lender’s financial standing.
The AU watchdog said the break was not driven by the downgrade itself, but by deep disagreements over Fitch’s methods.
It pointed to concerns about the agency’s rationale, analytical framing and interpretation of risk, which it said failed Africa’s realities.
African officials have long argued that global ratings agencies inflate the continent’s risk, quietly raising borrowing costs across fragile economies.
Moody’s, Fitch and S&P Global have rejected claims of bias, insisting their models apply the same standards across all regions.
Afreximbank now faces questions over whether it holds preferred creditor status, which could shield its loans during sovereign debt defaults.
Fitch has warned that any erosion of that status could trigger further rating actions, deepening uncertainty around the bank’s future.
Moody’s also rates Afreximbank and downgraded it last year, though it has never granted a preferred creditor uplift.
As markets listen closely, Africa’s debate over risk, perception and power continues to ripple through the corridors of global finance.
