THS the creation of the African Credit Rating Agency.
Sovereign credit ratings are independent judgements on a government’s creditworthiness. Today, 3 agencies are considered to be the most significant: Fitch Ratings, Moody’s Services and S&P Global Ratings. Rating scales differ between firms, but the top three agencies use alphabetical scales with AAA being the top level and C or D being the lowest. Rating agencies take a number of factors into account when assessing the level of risk associated with lending money to a government. These indicators include the level of government debt, per capita income, GDP growth, the stability of financial institutions, inflation and default history, among others. The African Union has reported plans to create the African Credit Rating Agency, launching in late 2024.