African Credit & Banking: Afreximbank Drops Fitch; Zenith Expands footprint

Significant shifts in the African institutional financial landscape are underway, marked by a major credit rating development and continued cross-border consolidation in the banking sector.

Afreximbank Terminates Fitch Relationship

In a move that has caught the attention of emerging market credit desks, the African Export-Import Bank (Afreximbank) has officially announced the termination of its credit rating relationship with Fitch Ratings.

While the bank has not explicitly detailed the strategic rationale in the immediate release, such moves often signal divergences between an institution's self-assessment and the agency's methodology. For FX traders and bondholders, this introduces a layer of complexity in assessing the credit risk of one of the continent's vital trade finance intermediaries.

Zenith Bank Deepens Liquidity Routes in Kenya

Simultaneously, liquidity consolidation continues in Sub-Saharan Africa. The Competition Authority of Kenya (CAK) has approved Zenith Bank Plcs acquisition of 100% of Paramount Bank Limited.

• Institution: Afreximbank terminates Fitch rating partnership.
• Acquisition: Zenith Bank acquires 100% of Paramount Bank in Kenya.
• Currency Flow: Facilitates trade between KES and NGN hubs.