On 03 April 2023, the United Nations Development Programme (UNDP) released the report "Lowering the Cost of Borrowing in Africa – The Role of Sovereign Credit Ratings."

"The role of credit rating agencies is critical in determining sovereign creditworthiness and, consequently, the cost of debt for both sovereign and corporate borrowers. Questions have been raised about the determination of these ratings in Africa, where there is a dearth of relevant data and where ratings agencies may not have a presence in the countries. This dynamic could have dire implications for much-needed development finance across the continent.  

This report analyzes credit ratings methodologies in Africa, discusses financial and development ramifications, and proposes alternative approaches for countries where relevant data is scarce."

Click here to download/read the report

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