LAGOS, NIGERIA, April 5, 2026 (NPA) — The United Nations has raised an alarm that developing countries are being priced out of affordable finance needed for sustainable development, with sovereign credit ratings often overstating risk and ignoring long-term economic potential. Speaking at the opening of the UN Economic and Social Council (ECOSOC) Special Meeting on Credit Ratings, Deputy Secretary-General Amina Mohammed, delivering remarks on behalf of Secretary-General António Guterres, said the current system relies too heavily on “outdated and incomplete information,” leaving poorer nations unfairly penalized in global capital markets.
“Adequate and timely finance is the fuel that drives sustainable development,” Mohammed warned. “Today that fuel is running perilously low, and it’s getting more costly.” She highlighted that developing countries face nearly $1.4 trillion in annual debt servicing costs, with more than 3.4 billion people living in nations that spend more on debt interest than on health or education. Rising fuel and raw material costs linked to global instability, coupled with climate disasters, are intensifying fiscal pressures and slowing growth, she added.
Mohammed linked the debate on credit ratings to broader debt reform efforts, citing initiatives such as a borrowers’ platform, principles for responsible sovereign borrowing and lending, and a UN-led process bringing together debtor and creditor countries, private creditors, and civil society. She also pointed to the planned African Credit Rating Agency as a step toward improving data, transparency, and risk assessment.
Calling for a reimagining of sovereign ratings, Mohammed urged a shift from speculation to investment, with methodologies that capture both vulnerability and opportunity. She stressed that affordable borrowing for development strengthens future solvency, noting that investment in health, education, infrastructure, climate resilience, and renewable energy reduces risk and builds prosperity. “It’s time to turn credit ratings from barriers into contributors to long-term finance and sustainable development,” she said.
