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About the Book Credit rating agencies effectively act as gatekeepers to financial markets, with their credit risk assessments influencing countries’ borrowing costs and access to investments. However, their ratings often fail to present an accurate picture of a country’s situation, skewed by a disproportionate focus on income and a narrow short-term outlook. These methodological shortcomings have contributed to unequal investment patterns that channel capital to already-rich countries while depriving developing economies of much-needed finance. This paper makes the case for a Multilateral Credit Rating Agency to serve as a counterweight to the currently dominant private agencies. The proposed MCRA would base its ratings on a longer time horizon and reduce reliance on income criteria. By recognizing economic dynamism and public investment as key determinants of long-term growth potential and financial resilience, it would aim to produce fairer sovereign risk assessments more attuned to a country’s development prospects. About the authors BHUMIKA MUCHHALA is a political economist and senior advisor with the Third World Network. MARIA SYED is a feminist economist and consultant with TWN. Contents Executive Summary 1. The Shortcomings of Private Credit Rating Assessments 2. Establishing a Multilateral Credit Rating Agency Analytical foundations of the MCRA A new methodological framework for the MCRA Key benefits of establishing an MCRA 3. The African Credit Rating Agency 4. Challenges and Potential Barriers 5. The Human Rights Dimension Endnotes
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