AFC wins Moody’s rating

The Lagos-based Africa Finance Corporation (AFC) has secured its first international credit rating from Moody’s Investors Service. Moody’s has assigned an A3 (long term)/P2 (short term) foreign currency debt rating, making the AFC the second highest investment grade rated multilateral financial institution on the African continent. Moody’s cited AFC’s sound capital adequacy, low leverage compared to peers, and an absence of non-performing loans. “Capitalisation is also supported by a good profit margin and significant profit retention,” the agency said. It also cited a high degree of liquidity, supporting the bank’s resilience to shocks, especially in light of the planned expansion of its balance sheet.