By Christopher Njoku

PRESIDENT and chief executive officer African Finance Corporation (AFC) Andrew Alli said that Moody’s rationale for confirming the investment grade rating was based on AFC’s sound capital adequacy position, owing to good equity buffers and low debt levels, as well as a strong prudential framework that supports a high degree of liquidity.

He disclosed this recently when African Finance Corporation (AFC)  recently held it’s international credit rating which reaffirmed at A3/P2 by Moody’s investors service.

According to him, “AFC implements stringent prudential ratios that aim over time to ensure sound capital adequacy and to reduce credit risk to the corporation’s expanding portfolio.

The continued rise in AFC’s profitability, which does not lead to a deterioration in asset quality, could exert further upward and positive pressure on the rating” he said.

He noted that AFC does not only provide access to finance, deal structuring and sector technical expertise, but also advisory services, project development capacity and funding, to bridge the infrastructure investment and access deficits in the core infrastructure sectors of power, natural resources, heavy industry, transport and telecommunications, all critical pillars for economic growth across Africa.

“Maintaining our international credit rating first issued in 2014 was an extremely positive achievement for the corporation as a leading supranational development finance institution in Africa and testifies to the rigorous investment processes that have been in place since inception in 2007.”