Credit Rating Agency Cooperation
The 2022 Capital Adequacy Framework recommendations called on MDBs to work with credit rating agencies to reassess how MDBs' credit ratings, and credit risks, are evaluated.
2030 Goals
Credit agencies adjust their ratings criteria of MDBs to better reflect MDBs' unique capacity to manage risk and fulfill financial commitments while expanding their balance sheets.
StatusNo progress
No progress
The CAF recommendations called on credit rating agencies to work with MDBs on a more fit-for-purpose rating method, but little forward progress has taken place. Engagement with the rating agencies will need to be highly collaborative as post-GFC reforms have made them very sensitive to outside pressure on their rating methodologies.
Relevant Actors & Audiences
Multilateral Development Banks
World Bank , Asian Infrastructure Investment Bank (AIIB), European Bank for Reconstruction and Development (EBRD), MIGA, Islamic Development Bank (IsDB), New Development Bank (NDB - BRICS Bank), International Finance Corporation (IFC), International Fund for Agricultural Development (IFAD) , OPEC Fund, International Bank for Reconstruction and Development (IBRD)
International Organizations
UN Trade and Development (UNCTAD)
Leading Countries and Alliances
V20, G20 Ministries of Finance, G24, G7, Glasgow Financial Alliance for Net Zero (GFANZ)
Supportive Stakeholders
Sustainable Debt Coalition, The Sustainability Linked Sovereign Debt Hub, MDB Reform Accelerator
Private FIs
Moody's, S&P Global Ratings, Fitch Ratings
Milestones
The below events contain milestones related to Credit Rating Agency Cooperation.
April
WBG/IMF Spring Meetings 2025
Milestones
Credit Rating Agency Cooperation
MDBs and leading CRAsinitiate a series of consultations to address the need for a more tailored and fit-for-purpose rating methodology for MDBs
November
UNFCCC COP30
Milestones
Credit Rating Agency Cooperation
The collaborative efforts between MDBs and CRAs culminate in the unveiling of a comprehensive, climate-sensitive credit rating methodology.
Resources
The below resources all pertain to the topic of Credit Rating Agency Cooperation.
Readout from the Second Credit Rating Agency Roundtable
MDB Reform, Credit Rating Agency Cooperation
On the sidelines of the Annual Meetings of the International Monetary Fund and the World Bank Group, Chief Financial and Risk Officers from all major multilateral development banks and other development financial institutions (jointly referred to as MDBs) convened with Credit Rating Agencies (CRAs) in Marrakech. World Bank News.
G20 Rio de Janeiro Leaders’ Declaration
MDB Reform, Credit Rating Agency Cooperation
G20 Roadmap towards better, bigger and more effective MDBS
MDB Reform, Credit Rating Agency Cooperation
The G20’s Task Force on a Global Mobilization against Climate Change (TF-CLIMA)
MDB Reform, Credit Rating Agency Cooperation
World Bank Group Announces New Financing, Adjusts Pricing Terms
MDB Reform, Credit Rating Agency Cooperation
Major MDBs Have Rating Headroom for USD480 Billion in New Lending
MDB Reform, Credit Rating Agency Cooperation
The MDB ships are turning but Not Yet on Course: Results of CGD’s Updated MDB Reform Tracker
MDB Reform, Credit Rating Agency Cooperation
Joint Multilateral Development Banks (MDBs) Statement for COP 29 – MDBs’ Support to Implementing the Paris Agreement
MDB Reform, Credit Rating Agency Cooperation