Fitch downgrades Afreximbank to one notch above 'junk'
LONDON, June 4 (Reuters) - Fitch downgraded Afreximbank's credit rating to one notch above junk on Wednesday, with a negative outlook, citing high credit risks and weak risk-management policies.
The one-notch downgrade to BBB- comes as the African lender battles to protect its loans from restructuring in Ghana, Zambia and Malawi, claiming that as a multilateral lender it has preferred creditor status.
Fitch pegged Afreximbank's non-performing loans at above 6%, while the bank itself reported an NPL ratio of 2.44% in the first half.
"The revision of risk management to 'weak' reflects low transparency in the recent reporting of loan performance relative to multilateral development bank peers and that Fitch's definition of NPLs differs from the bank's approach, which makes use of flexibilities offered by IFRS 9," Fitch said.
A lower credit rating can increase the borrowing cost for an issuer, which can in turn impact how much they can lend and at what rates.
Fitch attributed the negative outlook, which effectively puts the bank on downgrade watch, to the risk that some of its debt to sovereign borrowers might be included in restructuring.
"This would put pressure on our assessment of the bank's policy importance and heighten the risk associated with its strategy," Fitch said.
Afreximbank did not immediately comment on the downgrade.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
36 minutes ago
- The Independent
Trump sends Bessent and Lutnick to haggle with Chinese on tariff war after Xi chat
Three members of Donald Trump's cabinet will meet with Chinese officials in London on Monday in an effort to deescalate or resolve the unprovoked trade war which Trump started with Beijing two months ago. In a post on Truth Social, Trump said he was 'pleased to announce' that Treasury Secretary Scott Bessent and Commerce Secretary Lutnick would travel to London along with U.S. Trade Representative Jameson Greer for a sit-down with 'Representatives of China, with reference to the Trade Deal.' He added: 'The meeting should go very well. Thank you for your attention to this matter!'
The Guardian
2 hours ago
- The Guardian
UK government signals it will not force tech firms to disclose how they train AI
Campaigners have accused ministers of lying to parliament and the creative industries after the government signalled it would not force AI companies to disclose how they train their models. Ministers are holding firm in a standoff with the House of Lords, which has called for artists to be offered immediate copyright protection against artificial intelligence companies. Peers voted by 221 to 116 on Wednesday to insist on an amendment to the data bill that would force AI firms to be transparent about what copyrighted material they use to train their models. In an amendment tabled on Friday, the government dismissed the Lords' request and reiterated its promise to publish an economic impact assessment and technical reports on the future of AI and copyright regulation. Beeban Kidron, the cross-bench peer and film director who has campaigned on behalf of the industry, said during Wednesday's debate that she would 'accept anything that the Commons does' after this week. 'I will not stand in front of your Lordships again and press our case,' she said. But the News Media Association (NMA), which represents publishers including the Guardian, said peers could table further amendments to the data bill when it returns to the Lords next Wednesday. Industry figures said the government was acting in bad faith by not addressing the Lords' concerns and called for it to make further amendments of its own before MPs vote on it on Tuesday. Kidron said: 'The government has repeatedly taken all protections for UK copyrights holders out of the data bill. In doing so they have shafted the creative industries, and they have proved willing to decimate the UK's second biggest industrial sector. They have lied to parliament, and they are lying to the sector.' She said the government's action 'adds another sector to the growing number that have an unbridgeable gap of trust with the government'. Owen Meredith, chief executive of the NMA, said: 'the government's refusal to listen to the strong view of the Lords … risks undermining the legislative process. 'There is still time for the government to do the right thing, and take transparency powers in this bill. This would be a key step towards rebuilding trust with a £126bn industry.' Sign up to Headlines UK Get the day's headlines and highlights emailed direct to you every morning after newsletter promotion The government's approach to copyright has drawn the ire of major creative artists and organisations including Paul McCartney, Kate Bush and the National Theatre, with Elton John describing the situation as an 'existential issue' this week. Opponents of the plans have warned that even if the attempts to insert clauses into the data bill fail, the government could be challenged in the courts over the proposed changes. The consultation on copyright changes, which is due to produce its findings before the end of the year, contains four options: to let AI companies use copyrighted work without permission, alongside an option for artists to 'opt out' of the process; to leave the situation unchanged; to require AI companies to seek licences for using copyrighted work; and to allow AI firms to use copyrighted work with no opt-out for creative companies and individuals. Kyle has said the copyright-waiver-plus-opt-out scenario is no longer the government's preferred option, but Kidron's amendments have attempted to head off that option by effectively requiring tech companies to seek licensing deals for any content that they use to train their AI models.
The Independent
2 hours ago
- The Independent
Katie Price faces wait over further bankruptcy-related proceedings
Katie Price faces a wait to see whether more of her income will go directly towards paying off money owed under her two bankruptcies. The former glamour model was declared bankrupt in November 2019 and again in March last year, and the bankruptcies have since been discharged. However, Price, who did not attend the hearing and was not represented, still owes money as a result of the bankruptcies, and she had previously reached a voluntary agreement over her debts. On Friday, barrister Darragh Connell, representing trustees, told a specialist court in London she has not paid the £12,500 a month. He asked Insolvency and Companies Court Judge Sebastian Prentis to make an income payments order, which means money would go from any salary towards Price's outstanding debt. The order relates to 10 companies. However, the judge asked for more evidence to be provided to the court about Price's 'reasonable domestic needs'. Last August, a judge ruled that Price's income from social media platform TikTok be suspended as part of efforts to pay off her debts. And in February last year, a judge at a specialist bankruptcy court ordered that she must pay 40% of her monthly income from the adult entertainment website OnlyFans until February 2027. The next hearing will take place later in the year, on a date to be confirmed.
