JP Morgan has upgraded African Export-Import Bank (Afreximbank) bonds to overweight effectively issuing a buy recommendation, days after a controversial credit rating downgrade triggered a selloff in the lender’s debt.
In a report published on Monday, 2 February 2026, JP Morgan analysts said Afreximbank’s bond valuations now offer significant value relative to benchmarks, arguing that the market reaction had been excessive.
The US investment bank said market volatility following last week’s downgrade by Fitch Ratings had created an attractive entry point for investors, despite ongoing concerns over the bank’s exposure to sovereign debt restructuring in Ghana.
The ratings agency argued that the treatment of those loans suggested Afreximbank does not benefit from Preferred Creditor Status a designation that typically protects multilateral lenders from losses during sovereign defaults.
Afreximbank strongly rejected the assessment and in an unusual move, terminated its relationship with Fitch on Friday 30 January 2026, accusing the agency of misunderstanding its development mandate.
The bank said its founding treaty provides legal protections that Fitch’s methodology failed to recognise, and insisted its business profile remains resilient despite the downgrade.
Following the decision, Fitch withdrew all its ratings for the institution, despite the downgrade, Afreximbank’s bonds remain included in JP Morgan’s widely followed investment-grade bond indices, as Moody’s now the only major credit rating agency covering the bank has maintained an investment-grade rating of Baa2, albeit with a negative outlook.
JP Morgan analysts said the lender is likely to adjust future lending practices to reduce risks linked to sovereign debt restructurings, adding that the bank’s overall credit fundamentals remain sound.
