Reported 12 months ago
Fitch announced that the World Bank and other major development banks will not have their credit ratings affected by debt payment freezes for climate-disaster hit countries or by the issuance of new 'hybrid' bonds. Climate Resilient Debt Clauses (CRDC) inserted by these banks allow vulnerable countries to defer repayments in case of disasters, with Fitch stating that these clauses should have minimal impact on ratings. Additionally, Fitch adjusted its approach to hybrid bonds, eliminating the cap on ratings, providing these bonds greater lending flexibility for the banks while maintaining strong credit standings.
Source: YAHOO