By Bassey Udo
Fitch Ratings and other international credit rating agencies should always rely on fact-based and verified information and data for their rating of institutions, the African Peer Review Mechanism (APRM) has said.
The APRM is a voluntary self-monitoring instrument established by African Union (AU) member states to assess their own governance performance to foster political stability, high economic growth, and sustainable development across the continent.
The agency was reacting to the recent decision by Afreximbank to terminate its contractual relationship with Fitch Ratings over what it called the lack of a good understanding of its establishment agreement, its mission and its mandate.
In its reaction, APRM said it noted the decision by Afreximbank to terminate its contractual relationship with Fitch Ratings based on its “firm belief that the credit rating exercise no longer reflects a good understanding of the Bank’s Establishment Agreement, its mission and its mandate.”
The APRM pointed out that from its assessment, it was evident that the decision by Afreximbank was not a reaction to Fitch Ratings’ downgrade of the Bank in June 2025, nor to the prospective trajectory of future ratings.
The decision, it noted, was underscored by the fact that at the time of the downgrade, Moody’s Ratings undertook a similar action, with both agencies continuing to assign Afreximbank ratings that were broadly comparable and remained within investment-grade levels.
Rather, APRM said the issue was related to the quality of the rating analysis itself, including the rationale, analytical framing, and interpretation of underlying risk sources.
“When a credit rating departs from fact-based, issuer-engaged analysis intended to inform investors, and instead relies on speculative or prejudicial assumptions, it undermines its core purpose,” APRM noted.
“In such circumstances, an issuer is fully within its rights to discontinue the rating relationship. As a matter of consequence, any future ratings issued by Fitch in respect of the Bank would be unsolicited and non-participatory, and therefore risk misinforming investors,” it added.
Consequently, the APRM called on Fitch Ratings – and other international credit rating agencies – to always rely more on verified, official information obtained directly from issuers and relevant institutions, rather than predominantly on secondary public narratives, when formulating rating opinions.
The agency urged the ratings agencies to critically re-examine the criteria, assumptions, and analytical approaches applied by non-Africa-based analysts in the assessment of African institutions and stakeholders.
“Objective, transparent, and context-sensitive credit assessments are essential for the development of African financial markets and for ensuring fair, credible, and consistent treatment of African institutions within the global financial system,” it said.
The APRM reaffirmed its commitment to promoting accuracy, balance, transparency, and analytical integrity in credit ratings, in line with its broader mandate to advance good
governance, financial sovereignty, and sustainable development across the continent.
