The three major credit rating agencies – Moody’s, S&P Global and Fitch – have often differed among themselves when rating African institutions and countries. Their opinions don’t have to be aligned, but a huge gap in the ratings suggests inaccuracies in the analyses.
Wrong ratings have consequences. They drive up the cost of capital. Lower ratings indicate higher risk, and lead investors to demand higher interest rates to compensate for that risk. When a sovereign (country) is downgraded, its borrowing costs increase. It has to pay more interest on the same amount of debt, and has less chance of getting funding for development.
In the last three years there have been notable examples of rating agencies differing significantly in their decisions.
The first example is African Export-Import Bank. Between June 2025 and June 2026, the three major agencies reached materially different conclusions about the creditworthiness of the bank. The African Union has highlighted the flawed ratings.
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