Caribbean Development Bank Joins High-Level Talks with Credit Rating Agencies

Introduction to the Talks

BRIDGETOWN, Barbados, CMC -The Barbados-based Caribbean Development Bank (CDB) says it has joined leading multilateral development banks (MDBs) in high-level talks with the world’s three major credit rating agencies (CRAs).

The CDB said the collaboration is to advocate for reforms to rating methodologies that better reflect the unique financial structures and risk profiles of development finance institutions.

Objective and Outcome of the Talks

It said that the event, hosted by the Inter-American Development Bank (IDB), took place on the sidelines of the Spring Meetings of the International Monetary Fund and World Bank Group.

The region’s premier financial institution said it marked the fifth session in a continuing series launched in response to the G20-sponsored Independent Review of MDBs’ Capital Adequacy Frameworks (CAF) and the first meeting of 2025.

The discussions focused on enhancing technical engagement between MDBs and CRAs. The participants also reviewed the progress made in implementing the recommendations of the G20-sponsored Independent Review of MDBs’ Capital Adequacy Frameworks (CAF) and the way forward.

“MDB participants reiterated the importance of ensuring that credit rating criteria properly reflect the risk-mitigation mechanisms inherent in MDBs’ business models. CRA’s – Standard & Poor’s Global Ratings, Moody’s Ratings, and Fitch Ratings – expressed appreciation for the continued structured dialogue and acknowledged the progress in strengthening mutual understanding.”

Next Steps

The CDB said the next roundtable is scheduled for October this year.

Conclusion

The high-level talks between the Caribbean Development Bank and credit rating agencies mark an important step towards reforming rating methodologies and promoting a better understanding of the unique financial structures and risk profiles of development finance institutions. The continued dialogue and collaboration between MDBs and CRAs will be crucial in achieving this goal.

Frequently Asked Questions

What is the purpose of the high-level talks between the Caribbean Development Bank and credit rating agencies?

The purpose of the talks is to advocate for reforms to rating methodologies that better reflect the unique financial structures and risk profiles of development finance institutions.

What is the outcome of the talks?

The talks focused on enhancing technical engagement between MDBs and CRAs, and the participants reviewed the progress made in implementing the recommendations of the G20-sponsored Independent Review of MDBs’ Capital Adequacy Frameworks (CAF) and the way forward.