Credit rating agency Standard and Poors Global last Friday affirmed that the African Development Bank's capacity to meet its financial commitments on obligations is strong.

The bank got an AAA/A-1+' long- and short-term issuer credit assessment, confirming that the outlook on the African lender was also stable.

The rating agency positively assessed the bank's financial risk profile, capital adequacy, funding and liquidity, shareholder support and adequacy of its governance and management.

"We are therefore affirming our 'AAA' long-term issuer credit rating on the AfDB," the agency said.

The rating agency noted that the bank's US$115 billion capital increase, approved by shareholders in October 2019, and the replenishment to the African Development Fund, the bank's concessional window, in December 2019.

"The stable outlook reflects our expectation that, over the next two years, AfDB will prudently manage its capital while maintaining solid levels of high-quality liquidity assets and robust funding," S and P Global said in a statement.

S and P expects that "shareholders will remain supportive by providing timely capital payments, and the bank will continue benefiting from preferred creditor treatment, prudently manage growth in private-sector lending in a way that is aligned with its mandate".

The Ivory Coast based bank is owned by mainly by the Nigerian government (9,1%), Japan (6,5%), Egypt (5,5%), South Africa (4,9%), Algeria (4,1%), Germany (4%), Canada (3,7%), Ivory Coast (3,7%) and France (3,6%).

The rating agency further noted that the AfDB will play a key role in supporting the region, particularly in the context of Covid-19.

The institution approved an up to US$10 billion relief package for 2020, of which US$6,9 billion will be financed by AfDB and the remainder through its concessional lending window.

Akinwumi Adesina, the bank's president, said the decision to affirm the bank's top rating reflects its very strong financial position and risk management, as well as its sound governance.

"We will continue to maintain these standards, with the strong support of all our shareholders, as we deliver much needed financial, knowledge and policy support to our regional member countries during and after this period of the Covid-19 pandemic," he said.

- AfDB news, additional reporting by Lazarus Amukeshe

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