African Panel Challenges Fitch’s Afreximbank Ratings Downgrade

An African Union-backed panel challenged Fitch Ratings to review its downgrade of the African Export-Import Bank’s rating, questioning the company’s classification of loans to three countries.

Fitch cut its assessment of Afreximbank’s debt closer to junk earlier this week, citing the risk that money owed to the lender by sovereign borrowers might be included in those nations’ debt restructurings. The downgrade reduced the bank’s rating to BBB- — one step above the speculative level that would limit the pool of funds allowed to invest in its debt.