Afreximbank’s Bonds Plunge After Fitch Cuts Rating to Junk
The Okaishie outdoor market in Accra, Ghana. Fitch pointed to Ghana’s debt restructuring agreement with Afreximbank, saying the move prompted it to revise the assessment of Afreximbank’s business profile to “high risk” from “medium risk”.
Photographer: Ernest Ankomah/BloombergFitch Ratings cut its assessment of the African Export-Import Bank’s credit to ‘junk’ status, just days after the Cairo-based lender said it terminated their relationship following a dispute. The Cairo-based lender’s bonds due 2031 fell sharply.
Fitch downgraded Afreximbank’s long-term issuer default rating to ‘BB+’ from ‘BBB-’. The outlook is stable, the ratings company said in a statement posted to its website Wednesday.