Caribbean Development Bank Joins Multilateral Development Banks in High-Level Talks

Bridgetown, Barbados

– The Caribbean Development Bank (CDB) joined leading multilateral development banks (MDBs) in high-level talks with the world’s three major credit rating agencies (CRAs), advocating for reforms to rating methodologies that better reflect the unique financial structures and risk profiles of development finance institutions.

Roundtable Discussions

The roundtable, hosted at the Inter-American Development Bank’s Headquarters in Washington, D.C., took place on the sidelines of the recent Spring Meetings of the International Monetary Fund and World Bank Group. 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.

Key Discussion Topics

Discussions focused on enhancing technical engagement between MDBs and CRAs. Topics discussed included:

A review of the progress on implementing the recommendations of the G20-sponsored Independent Review of MDBs’ Capital Adequacy Frameworks (CAF) and the way forward.
Updates from the Global Emerging Markets Risk Database Consortium, which provides critical data-driven insight for investors and credit rating agencies demonstrating MDBs’ strong credit performance.
Updates from the credit rating agencies on recent changes to credit rating criteria and market developments relevant to the development finance ecosystem.

Outcome and Next Steps

MDBs 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 made in strengthening mutual understanding.

The next roundtable is scheduled for October 2025.

Conclusion

The high-level talks between MDBs and CRAs mark an important step towards reforming rating methodologies to better reflect the unique financial structures and risk profiles of development finance institutions. The continued dialogue and collaboration between MDBs and CRAs will help to strengthen mutual understanding and promote more accurate credit ratings.

Frequently Asked Questions

Q: What is the purpose of the roundtable discussions between MDBs and CRAs?

A: The purpose of the roundtable discussions is to enhance technical engagement between MDBs and CRAs and to advocate for reforms to rating methodologies that better reflect the unique financial structures and risk profiles of development finance institutions.

Q: What are the key topics discussed during the roundtable?

A: The key topics discussed during the roundtable include a review of the progress on implementing the recommendations of the G20-sponsored Independent Review of MDBs’ Capital Adequacy Frameworks (CAF), updates from the Global Emerging Markets Risk Database Consortium, and updates from the credit rating agencies on recent changes to credit rating criteria and market developments relevant to the development finance ecosystem.

Q: What is the next step in the process?

A: The next roundtable is scheduled for October 2025.