A number of African countries have recently been contesting decisions by credit rating agencies. Some have raised objections that the rating agencies lack understanding of their economic environment.
Others have challenged the correctness of their ratings on the basis that the agencies had not discussed them with the country’s representatives.
The United Nations has questioned the timing and basis for rating downgrades. The eurozone rating watchdog – the European Securities and Markets Authority – has also cautioned agencies against deepening the coronavirus crisis through “quick-fire” downgrades of countries as the pandemic pushes economies into recession. The African Union has called for rating agencies to freeze downgrades during the COVID-19 global pandemic.