The financial rating agency S&P Global Ratings on Friday confirmed the short- and long-term credit rating "AAA/A-1+" assigned to the African Development Bank (AfDB), with a stable outlook, according to a bank rating published on Monday.

S&P Global Ratings assessed the AfDB's risk profile in a "positive" manner, as well as its capital adequacy, the soundness of its funding strategy and its level of liquidity. And this, thanks to the strong support of its shareholders and the adequacy of its governance and management system.

With this data, the credit rating agency maintained the "AAA" rating of the AfDB's long-term debt. This performance also remains strong following the historic increase in the Bank's capital to the tune of 67,233 billion CFA francs in October 2019.

This stable outlook is also due to the replenishment of the African Development Fund and the Concessional Lending Window of the African Development Bank Group (AfDB) in December 2019.

According to S&P Global, this rating reflects the bank's forecasts that "over the next two years, the AfDB will prudently manage its capital, while maintaining a high level of liquidity coupled with a quality investment portfolio, and pursuing a robust funding strategy."

The agency assures that "shareholders will continue to provide their support by paying their contributions to the Capital of the Bank according to the established schedule". This should allow the institution to benefit from the treatment accorded to preferred creditors, and to prudently manage the growth of loans granted to the private sector in relation to its mandate.

With this financial strength, the credit rating agency believes that the bank will play a key role in supporting the region, especially in the context of the Covid-19 pandemic that has affected the economies of states and the portfolio of companies.

To mitigate the impact of the Covid-19 crisis, the institution has approved emergency assistance of up to $10 billion in 2020, of which $6.9 billion will be financed directly by the Bank and the rest through its concessional window.

"We welcome S&P Global Ratings' decision to reaffirm the bank's AAA/A-1+ rating. This decision reflects the institution's strong financial strength, prudential risk management and quality of governance," said AfDB President Akinwumi Adesina.

Mr. Adesina pledged to "maintain the bank at this level of excellence", with the full support of all shareholders, in order to provide regional member countries with essential support in terms of financing, knowledge and policy support, during this period of the Covid-19 pandemic.