How rating agencies could support African governments in overcoming debt crises

An effective framework for restructuring global debt remains an urgent need for Africa, which could be supported by changing sovereign rating practices. By integrating the severity of financial losses in a default episode, rating agencies could better serve investors, while also incentivising overleveraged governments to seek debt relief. As interest rates rise, the world economy slows and food prices mount, procrastination around debt relief would result in avoidable humanitarian crises.