Latest news with #lender
Zawya
14 hours ago
- Business
- Zawya
Moody's downgrades Afrexim on weak asset performance, shrinking funding sources
LONDON - Ratings 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. The downgrade also reflected a less extensive range of funding sources, which was "a trend unlikely to fully reverse", Moody's said. Afrexim historically benefitted from diversified, low-cost funding through bilateral and syndicated loans rather than market-based sources, it said. A $520 million Samurai bond sold in late 2024 and a $303 million Panda bond in early 2025 were "modest" relative to total funding needs. Moody's noted that amid the recent worsening in market conditions, Afrexim more than doubled its liquidity from end-2024 to $9.5 billion recently. "Maintaining such high levels of cash is costly and therefore unlikely," Moody's said. Moody's pointed to some mitigating factors such as strong profitability, and added that at the end of 2024, 41% of the Zambian and Ghanaian sovereign exposures had already been provisioned. "In addition to consistently strong organic earnings and capital generation, the bank has received consistent support from member shareholders, with both capital raising exercises and retained profit contributing significantly to grow equity." 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
16 hours ago
- Business
- Reuters
Moody's downgrades Afrexim on weak asset performance, shrinking funding sources
LONDON, July 2 (Reuters) - Ratings 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. The downgrade also reflected a less extensive range of funding sources, which was "a trend unlikely to fully reverse", Moody's said. Afrexim historically benefitted from diversified, low-cost funding through bilateral and syndicated loans rather than market-based sources, it said. A $520 million Samurai bond sold in late 2024 and a $303 million Panda bond in early 2025 were "modest" relative to total funding needs. Moody's noted that amid the recent worsening in market conditions, Afrexim more than doubled its liquidity from end-2024 to $9.5 billion recently. "Maintaining such high levels of cash is costly and therefore unlikely," Moody's said. Moody's pointed to some mitigating factors such as strong profitability, and added that at the end of 2024, 41% of the Zambian and Ghanaian sovereign exposures had already been provisioned. "In addition to consistently strong organic earnings and capital generation, the bank has received consistent support from member shareholders, with both capital raising exercises and retained profit contributing significantly to grow equity." 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.
New Straits Times
2 days ago
- Business
- New Straits Times
Loan sharks using funerary symbols to intimidate borrowers, says MCA
KUALA LUMPUR: Loan sharks are now using funeral images to intimidate borrowers, replacing violent tactics with psychological pressure to collect dues, the MCA Public Services and Complaints Department revealed today. MCA Public Services and Complaints Department head Datuk Seri Michael Chong said his team had received complaints alleging that loan sharks had edited their victims' faces into fake funeral photos. "These edited images are uploaded on social media to instil fear and shame not just in the victims, but also their families," he said. In one recent case, a businessman from Klang identified only as Tan, 40, claimed he had received an image showing his portrait in a mock funeral memorial. "The image had joss sticks and an altar backdrop. They sent it after I failed to fully repay an unlicensed loan," he said at a press conference at Wisma MCA today. "The photo was sent by the lender, known as Han, supposedly to 'remind' me of what happens when you don't pay up. But I had already repaid RM6,000 of the RM10,000 borrowed," he said. Tan said the RM10,000 loan was part of a larger RM50,000 sum he had borrowed in February to support his business, and which had been repaid in March. "I had borrowed five times before this and paid every time. But this time, even before I finished paying, they started threatening me in all sorts of ways. "The picture was sent on June 26 but was deleted several hours later," he said. Meanwhile, MCA Public Complaints Bureau deputy chief and lawyer Ivan Tan said such tactics were increasingly being used as a form of psychological intimidation. Ivan said the shift in approach might be due to the loan sharks realising that symbolic or visual threats carried lighter penalties than physical violence. "They likely have some legal awareness and believe that these symbolic threats do not fall under the category of serious criminal intimidation. "This in turn makes it harder for authorities to act under existing legal provisions. We urge the government to review the laws and consider harsher penalties for such tactics," he said.
News18
3 days ago
- Business
- News18
IDBI Bank Shares Jump 4% As Strategic Sale Nears Financial Bidding Stage
Shares of IDBI Bank surged 4% to Rs 105 apiece on June 30, following reports that the government is set to invite financial bids IDBI Bank Share Price: Shares of IDBI Bank surged 4% to Rs 105 apiece on June 30, following reports that the government is set to invite financial bids for the lender soon. According to CNBC-TV18, the Centre is close to finalising the share purchase agreement with prospective buyers and may shortly seek clearance from the ministerial panel overseeing the transaction. The long-delayed IDBI Bank stake sale is seen as a crucial pillar in the government's strategic disinvestment roadmap. Despite multiple deferrals over the past three years, the process now appears to be gaining traction. So far in 2025, IDBI Bank shares have rallied 35%, significantly outperforming the Nifty 50's 7% year-to-date gain. Currently, the Union government and LIC jointly own 95% of IDBI Bank, of which 60.72% is set to be divested. This move also reflects a shift in the Centre's approach to monetising public assets. Unlike earlier years, the Union Budget 2025-26 did not specify a separate disinvestment target, instead grouping all proceeds under a broader category—'miscellaneous capital receipts"—estimated at Rs 47,000 crore. In FY25, the government collected around Rs 30,000 crore via disinvestment. However, officials are hopeful that marquee deals like IDBI Bank's sale will help plug fiscal gaps in FY26. On the earnings front, IDBI Bank reported a 26% year-on-year rise in net profit for Q4FY25, clocking Rs 2,051 crore compared to Rs 1,628 crore in the same quarter last year. However, Net Interest Income (NII) declined 11% year-on-year to Rs 3,290 crore from Rs 3,688 crore. Asset quality improved further, with Gross NPA falling to 2.98% from 3.57% in Q3FY25, and Net NPA easing to 0.15% from 0.18% in the previous quarter. About the Author Stay updated with all the latest news on the Stock Market, including market trends, Sensex and Nifty updates, top gainers and losers, and expert analysis. Get real-time insights, financial reports, and investment strategies—only on News18. First Published: June 30, 2025, 12:24 IST
Malaysian Reserve
25-06-2025
- Business
- Malaysian Reserve
Washington Trust Named Rhode Island's Best-In-State Bank by Forbes for Seventh Year
WESTERLY, R.I., June 24, 2025 /PRNewswire/ — Washington Trust has been recognized as Rhode Island's Best-In-State Bank for 2025 by Forbes, marking the seventh consecutive year the bank has appeared on the list, and the third consecutive year they have been ranked #1. The annual Forbes Best-In-State Banks list, compiled in partnership with market research firm Statista, evaluates financial institutions based on customer satisfaction, trust, fees, digital services, and financial advice. 'We are deeply honored to be named Rhode Island's Best-In-State Bank again this year,' said Edward O. 'Ned' Handy III, Washington Trust Chairman and CEO. 'This recognition reflects the Bank's two and a quarter centuries of unwavering commitment to delivering exceptional banking experiences, fostering trust, and supporting the financial wellbeing of our customers and communities. By combining innovative technology for convenience and accessibility, with the personalized service of our dedicated team, we strive to meet the evolving needs of those we serve. We thank our employees for their hard work, and our customers for their continued loyalty that has endured for 225 years.' Forbes' 2025 ranking methodology included surveys of more than 26,000 U.S. consumers, assessing banks on criteria such as customer service, trustworthiness, accessibility, and transparency. Washington Trust's consistent dedication to personalized service, innovative digital solutions, and community engagement has solidified its position as a leader in Rhode Island's banking sector. ABOUT WASHINGTON TRUST® Founded in 1800, Washington Trust is recognized as the oldest community bank in the nation, the largest state-chartered bank headquartered in Rhode Island and one of the Northeast's premier financial services companies. Washington Trust values its role as a community bank and is committed to helping the people, businesses, and organizations of New England improve their financial lives. The Bank offers a wide range of commercial banking, mortgage banking, personal banking and wealth management services through its offices in Rhode Island, Connecticut and Massachusetts and a full suite of convenient digital tools. Washington Trust is a member of the FDIC and an equal housing lender. Washington Trust is a subsidiary of Washington Trust Bancorp, Inc., a publicly-owned holding company which trades on NASDAQ: WASH. For more information, visit the Bank's website at or the Corporation's website at
