LAGOS, Nigeria, March 3, 2014 /PRNewswire/ --
Moody's assigns A3/P-2
The Africa Finance Corporation (AFC or the Corporation), a multilateral development financial institution headquartered in Lagos, has today secured its first International credit rating from Moody's Investors Service (Moody's). Moody's has assigned the Corporation 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 rationale for this investment grade rating is based on a sound capital adequacy position, high asset quality and strong prudential framework that supports a high degree of liquidity, supported by an excellent profit margin and profit retention. Additionally, the Corporation's strong liquidity framework and position, which is in excess of the requirements of Basel III Capital Accord on liquidity risk management, will mitigate against external economic shocks, and help support planned growth. The outlook on the rating is stable.
AFC was established in 2007 as a private sector-led Pan African multilateral development finance institution, with an initial capital base of USD1.1 billion, to be a catalyst for private sector infrastructure investment across Africa. AFC was established to help fill a critical void in providing project structuring expertise and risk capital to address Africa's infrastructure development needs. AFC not only provides 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.
Commenting on the International rating, Andrew Alli, President & Chief Executive Officer, AFC, said, "Attaining an investment grade International credit rating, only six years after inception, is a tremendous achievement. It is a major milestone in the Corporation's history. This rating, together with AFC's strong capital position and the quality of its portfolio, will enable AFC to grow its balance sheet, broaden its asset base and expand its geographical footprint. It is a further endorsement of the Corporation's rigorous investment process, innovative approach to infrastructure investment on the continent, world-class corporate governance and solid shareholder support. The Corporation is poised to assist in further driving economic growth and industrial development in Africa. We are extremely pleased with the rating."
About AFC - http://www.africafc.org
SOURCE Africa Finance Corporation (AFC)