The agency, which would craft its own assessment of the risks in lending to African countries, would be based on the continent and would add context to the information investors consider when deciding whether to buy African bonds or lend privately to countries, said Misheck Mutize, lead expert for country support on rating agencies with the African Union.
The AU, and leaders of member nations from Ghana to Senegal to Zamia, allege that the "big three" ratings agencies – Moody's, Fitch and S&P Global Ratings – do not fairly assess the risk of lending to African countries, and claim that they are quicker to downgrade them during crises such as the COVID-19 pandemic.
Moody's, Fitch and S&P Global Ratings did no immediately respond to a request for comment. Ravi Bhatia, S&P's lead analyst for sovereign ratings, has said recently that the agency applies the same criteria consistently all regions. "We know the big three follow the opinion of other smaller ratings agencies. They've acknowledged that other smaller ratings agencies have got an edge in understanding domestic dynamics."