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Moody’s AAA rating validated AfDB’s strength —Adesina

The President of the African Development Bank (AfDB), Dr. Akinwumi Adesina, said on Saturday the multilateral lender’s AAA rating by Moody’s Investors Service validated the strength of its governance systems despite the COVID-19 pandemic.

Adesina stated this in a statement issued by the bank in Abidjan, Ivory Coast.

Adesina said: “The AAA rating by Moody’s validates the strength of the Bank’s prudent financial and risk management and strong governance systems even in the face of tough challenges imposed by the COVID-19 pandemic.

“The extraordinary support of the bank’s shareholders boosts our capacity to finance African countries.

“We will continue to manage risks and capital requirements adequately to help African countries to build their economies back, better and faster, while assuring economic, health, and climate resilience.’’

The AfDB Acting Senior Vice President, Swazi Tshabalala, reiterated the backing of the bank’s shareholders and strong financial profile.

“AfDB is rated triple-A with stable outlook by all the major international rating agencies,” the official added.

READ ALSO: Climate change to cost Nigeria, others $15bn annually –AfDB

The AAA is the highest rating possible that may be assigned to an issuer’s bonds by any of the major credit rating agencies.

The United States-based business and financial services company had affirmed AfDB’s AAA credit rating with a stable outlook in an annual credit analysis dated October 27.

It said: “The credit profile of the African Development Bank (AfDB) is supported by the bank’s robust capital buffers and superior risk management, which mitigate risks.

“An ample liquidity buffer and unfettered access to international capital markets also support its ability to meet its debt-service obligations.

“Moreover, the bank has a long track record of being the premier development institution in Africa and benefits from shareholders’ ability and willingness to support its development objectives, exemplified by the significant contributions of highly rated non-regional member countries.’’

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