The ratings agency said its outlook reflected the
expectation that the African Development Bank (AfDB) would, over the next two
years, “prudently manage its capital while maintaining solid levels of
high-quality liquidity assets and a robust funding profile. We also assume
extraordinary shareholder support to the bank will remain unchanged.”
In a letter, dated 29 January 2021, S&P Global Ratings
noted the Bank’s $115 billion capital increase, approved by its shareholders in
October 2019.
S&P said: “Our ratings on AfDB reflect its important
role in Africa, marked by a long track record of fulfilling its policy mandate
through economic cycles, combined with robust shareholder support. In October 2019,
the bank’s shareholders approved its seventh general capital increase
(GCI-VII), effectively increasing the bank’s capital base by $115 billion … to
$208 billion.”
“We expect the capital increase will enable AfDB to continue
expanding its reach, particularly in light of the renewed focus on
infrastructure financing and private-sector lending. The bank has already been
growing steadily over the years. The bank is in a good position to support
increasing mobilization efforts and crowd-in additional private-sector funds.”
African Development Bank President Dr. Akinwumi Adesina
said: “The AAA rating by S&P Global Ratings affirms our prudent financial
and risk management at the African Development Bank, and our strong governance
systems.
“We have been able to maintain our high standards despite
the tremendous challenges posed by the ongoing COVID-19 pandemic. We are
grateful for the steadfast and extraordinary support of our shareholders.
“The Bank remains committed to providing African countries
with needed financing support to recover from the health crisis and to strongly
grow back their economies, while managing our risk and capital requirements.”