Market News
African Union to launch continent's first credit rating agency - REUTERS
Summary
- Africa to launch its first credit rating agency in Mauritius
- Move expected to provide an alternative to the "Big Three" global ratings agencies
- AfCRA will operate independently and use African data and expertise
NAIROBI, Oct. 7 (Reuters) — The African Union will launch the continent's first credit rating agency on Wednesday, seeking to provide an alternative to the "Big Three" global ratings agencies as debt burdens weigh on many African economies.
The launch of the Africa Credit Rating Agency (AfCRA) will take place in Port Louis, the capital of Mauritius, where the agency will be based. The project has been nearly a decade in the making, with African leaders endorsing its creation in 2018.
"AfCRA complements existing global credit rating agencies by offering a perspective rooted in African data, expertise and realities," the African Union said in a statement.
African leaders have long accused Western ratings agencies of failing to fairly assess the risk of lending to African countries and of moving too quickly to downgrade them during crises such as conflicts and pandemics.
The agencies reject that criticism, saying they apply the same methodologies globally.
