Company News in Brief

Moody's downgrades Afrexim on weak asset performance, shrinking funding sourcesRatings agency Moody's has slashed its rating on Afreximbank, the embattled African lender's second downgrade in four weeks, citing weaker-than-expected asset performance and warning that its access to funding sources was shrinking.Moody's lowered the rating from Baa1 to Baa2 - two notches above a sub-investment grade or "junk" rating - and changed its outlook from negative to stable, according to a statement published late on Tuesday."The bank's recent shift to unsecured lending to sovereigns under stress has introduced significant risks, diverging from its typical focus on trade finance, and heightened its sensitivity to its difficult operating environment," Moody's said.A lower credit rating can raise borrowing costs and in turn impact lending rates.Moody's one-notch downgrade comes as the African lender battles to protect its loans from restructuring in Ghana, Zambia and Malawi, claiming that as a multilateral lender it has preferred creditor status."Sovereign lending to Ghana and Zambia poses capital risks, as the Common Framework mandates restructuring comparable to private-sector creditor losses," Moody's said.Fitch downgraded Afreximbank's credit rating to one notch above junk on June 4, with a negative outlook - effectively another downgrade warning.While the Fitch downgrade sent Afrexim's bonds on a slide that saw them hit around a year low in mid-June, they have since recovered. On Wednesday, the 2029 maturity was bid at 91.4 cents on the dollar, while the 2031 bond stood at 86.14 cents, according to Tradeweb data - both broadly unchanged on the day.-REUTERS Approval of Egypt's IMF programme review faces possible delay, sources sayThe IMF may merge its fifth and sixth reviews of Egypt's $8 billion support programme because of slow progress on structural reforms, possibly delaying a new disbursement by half a year, three people with knowledge of discussions said on Tuesday.The International Monetary Fund approved its fourth review of the programme in March, unlocking a disbursement of $1.2 billion. An IMF team arrived in Egypt in May to begin the fifth review but has yet to signal its approval, the sources said.The 46-month facility was first signed in March of 2024 following more than a year of severe foreign currency shortages and inflation that peaked at 38% in September 2023.The IMF has so far paid out about $3.5 billion under the fund, according to Reuters calculations.The IMF has yet to publish a staff report from the fourth review. Egypt asked for a delay to give it time to release details of measures to widen the tax base, the first source said.-REUTERS African Development Bank to give South Africa $475 million loanThe African Development Bank will give South Africa a $474.6 million loan to upgrade its transport and energy infrastructure, the bank said on Tuesday, the second big infrastructure loan the country has been promised in weeks.The money adds to the $1.5 billion loan South Africa agreed with the World Bank last month for a similar purpose.The African Development Bank said in a statement that its financing aimed to promote energy efficiency and rail reforms, among other things.It said its support was part of an international financing package for South Africa that also includes the World Bank loan, 500 million euros ($590.75 million) from German development bank KfW, up to $200 million from the Japan International Cooperation Agency and $150 million from the OPEC Fund for International Development.-REUTERS

Company News in Brief

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Namibian Sun 2026-01-20

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Company News in Brief

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Namibian Sun 2026-01-20

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