Rating agency S&P Global, on Friday, affirmed its ‘AAA/A-1+’ long- and short-term issuer credit assessment of the African Development Bank (AfDB) with a stable outlook, while positively assessing its very strong financial risk profile, very strong capital adequacy, strong funding and liquidity, extraordinary shareholder support and adequacy of its governance and management.

“We are therefore affirming our ‘AAA’ long-term issuer credit rating on the AfDB,” S&P Global stated.

The agency noted the group’s $115bn capital increase approved by shareholders in October 2019, and the replenishment and concessional window, in December 2019.

“The stable outlook reflects our expectation that, over the next two years, AfDB will prudently manage its capital while maintaining solid levels of high-quality liquidity assets and robust funding,” S&P Global said in a statement.

S&P expects that “shareholders will remain supportive by providing timely capital payments;” and that the bank “will continue benefiting from preferred creditor treatment (PCT); and “prudently manage growth in private-sector lending in a way that’s aligned with its mandate.”

The rating agency’s report further noted that the “AfDB will play a key role in supporting the region, particularly in the context of COVID-19. The institution approved an up to $10bn relief package for 2020, of which $6.9bn will be financed by AfDB and the remainder through its concessional lending window.”

Commenting on the rating, President of the Bank, Akinwumi Adesina, expressed the group’s delight “with and welcome S&P Global’s decision to affirm the Bank’s AAA/A-1+ rating. It reflects the bank’s very strong financial position and risk management, as well as our sound governance.

“We will continue to maintain these standards, with the strong support of all our shareholders, as we deliver much needed financial, knowledge and policy support to our regional member countries during and after this period of the COVID-19 pandemic.”