Dr Akinwumi Adesina, President, African Development Bank (AfDB), says the AAA rating by Moody’s Investors Service has validated the strength of the bank’s strong governance systems, in spite of the COVID-19 pandemic.
Adesina said this in a statement from the bank on Saturday.
Moody’s AAA rating is the highest possible rating that may be assigned to an issuer’s bonds by any of the major credit rating agencies.
AAA-rated bonds have a high degree of creditworthiness because their issuers are easily able to meet financial commitments and have the lowest risk of default.
Adesina said: “The AAA rating by Moody’s validates the strength of AfDB’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 of economic, health and climate resilience.’’
Besides, Swazi Tshabalala, Acting Senior Vice President for Finance and Chief Finance Officer, AfDB, similarly attributed the AAA rating to the support of the bank’s shareholders and its strong financial profile.
Tshabalala said: “AfDB is rated triple-A with stable outlook by all the major international rating agencies.
“Moody’s Investor Service affirmed AfDB’s AAA credit rating, with a stable outlook in an annual credit analysis, dated Oct. 27.
Moody’s investor service had said: “The credit profile of 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 it benefits from shareholders’ ability and willingness to support its development objectives, exemplified by the significant contributions of highly rated non-regional member countries.’’
Moody’s Corporation, often referred to as Moody’s, is an American business and financial services company.
It is the holding company for Moody’s Investors Service (MIS), an American credit rating agency and Moody’s Analytics (MA), an American provider of financial analysis software and services.
MIS is the bond credit rating business of Moody’s Corporation, which provides international financial research on bonds issued by commercial and government entities.
Moody’s Corporation, along with Standard & Poor’s and Fitch Group, are considered to be the major credit rating agencies in the world.