MOODY ‘S RATING OF AFRICAN COUNTRIES
A
frican Union to establish credit rating agency for continent: The Africa Peer Review Mechanism (APRM) has kick started the
process of designing a legal and structural framework for the
Such inconsistencies, which had led to sovereign rating downgrades of Africancountries since the outbreak of COVID19, he said, justified the rationale behind the decision of the AU Assembly in January 2017 to direct the APRM to provide support to AU Member States in the field of Credit Rating Agencies.
establishment of a creditrating
“Some countries were downgraded
agency as an
before they even registered a
independent
single case of Covid-19. Most
entity of the AfricanUnion (AU).
of these rating decisions were merely based on expectations that countries’
The framework,
fiscal
which is based on
situations
the outcome of an
would deteriorate
APRM feasibility study that supports the move to provide alternative and complimenting rating opinions, would also look at the financial
and their health systems would be severely strained by the pandemic,” he
implications of setting up the African Credit Rating
stated.
Agency (CRA). Professor Eddy Maloka, the Chief Executive Officer (CEO) of the APRM, made this known at a sensitisation meeting on APRM support to member states on international credit rating agencies. “We will be reporting the outcomes to the Specialised Technical Committee of Finance Ministers Committee later this year,” he said.
LOW CREDIT RISK MODERATECREDIT RISK SUBSTANTIAL CREDIT RISK
The non-reflection of average improvement in political, economic, and social indicators in rating of African countries by international rating agencies, he said,
HIGHCREDIT RISK VERY HIGH CREDIT RISK
explained the rise in discontentment of operations of those agencies.
COUNTRY NOT RATED
BY MARK-ANTHONY JOHNSON
HTTPS://JICHOLDINGS.COM CEO GLOBAL MAGAZINE.COM
ISSUE 3
VOL 22
35
