Readout of the Sixth MDBs and Credit Rating Agencies Roundtable

Washington - Building on a strong foundation of collaboration, Chief Financial Officers and Chief Risk Officers from multilateral development banks and other development finance institutions (jointly referred to as MDBs) met today to continue their dialogue with the three major credit rating agencies (CRAs). These ongoing engagements play a vital role in enhancing mutual understanding and ensuring that credit rating methodologies accurately reflect the distinctive financial and risk-management frameworks of MDBs.

The discussion focused on three key areas:

• Implementation of Capital Adequacy Framework (CAF) Recommendations: MDBs provided updates on progress made in implementing the G20-sponsored Independent Review of MDBs' Capital Adequacy Frameworks, including recent reforms to optimize capital efficiency while maintaining financial strength. The steps taken so far have resulted in close to $700 billion in additional lending capacity over the next ten years.
• Enhancements to the Global Emerging Markets Risk Database Consortium (GEMs): Participants reviewed the publication of new datasets and strengthened governance arrangements within GEMs, which support data-driven insights into MDBs' strong credit performance.
• Criteria Enhancements for Risk Transfer Instruments: MDBs and CRAs explored suggestions for refining rating criteria to better capture the credit risk mitigation benefits of risk transfer instruments.

The roundtable included a discussion with Standard & Poor's regarding their recent update to the Multilateral Lending Institutions criteria. The revisions include substantive improvements, such as enhanced recognition of MDBs' preferred creditor status, guidance on contingent equity instruments, and updates to hybrid capital criteria. Several of these enhancements build on topics from previous roundtable discussions. MDBs welcomed the opportunity to engage with S&P and acknowledged the progress that had been made.

CRAs expressed appreciation for the continued structured engagement, while MDBs emphasized the importance of rating methodologies that reflect MDBs' robust risk management frameworks and evolving business models.

This meeting marked the second session held in 2025 and the sixth overall since the dialogue was launched in 2023. The next roundtable is expected to take place in April 2026.

Participants in the roundtable included:

MDBs and development finance institutions

1. Asian Development Bank (ADB)
2. African Development Bank (AfDB)
3. Asian Infrastructure Investment Bank (AIIB)
4. Central American Bank for Economic Integration (CABEI)
5. Development Bank of Latin America and the Caribbean (CAF)
6. Caribbean Development Bank (CDB)
7. Council of Europe Development Bank (CEB)
8. European Bank for Reconstruction and Development (EBRD)
9. European Investment Bank (EIB)
10. European Stability Mechanism (ESM)
11. Fondo Latinoamericano de Reservas (FLAR)
12. FONPLATA Development Bank
13. International Fund for Agricultural Development (IFAD)
14. Inter-American Development Bank (IDB)
15. IDB Invest
16. International Finance Corporation (IFC)
17. Islamic Development Bank (IsDB)
18. Multilateral Investment Guarantee Agency (MIGA)
19. Nordic Investment Bank (NIB)
20. OPEC Fund for International Development (OPEC Fund)
21. World Bank

Credit Rating Agencies (CRAs)

1. Standard & Poor's Global Ratings
2. Moody's Ratings
3. Fitch Ratings

The Council of Europe Development Bank (CEB) is a multilateral development bank with an exclusively social mandate from its 43 member countries. The CEB finances investment and provides technical assistance in social sectors such as education, health and affordable housing, while focusing on the needs of vulnerable people, as well as on the social dimensions of climate change and the environment. Borrowers include governments, local and regional authorities, public and private banks, non-profit organisations and others. The CEB, which has a triple-A credit rating, funds itself through international capital markets. In addition, the CEB receives funds from donors to complement its activities.