The International Fund for Development has become the first UN fund to receive a credit rating, providing a boost to the world’s poorest people, IFAD announced Friday.
"IFAD is proud to become the first UN fund to receive credit ratings, announced by FitchRatings. This sets the stage for increased investments for rural development and is an important step towards the achievement the SDGs (Sustainable Development Goals), the agency tweeted.
IFAD's AA+ (stable) rating was announced by Fitch Ratings, which also assigned IFAD a short-term rating of F1+, according to a statement.
“The strong rating comes at a critical time when the impacts of COVID-19 threaten to push millions more rural people into hunger and poverty," said IFAD president Gilbert F. Houngbo.
This rating will allow IFAD to strengthen and diversify its resource base, and build global resilience to future shocks,” Houngbo added.
The credit rating awarded by Fitch also adds momentum to international efforts raise more cash to achieve the SDGs by 2030, the IFAD statement said.
IFAD-supported projects and programmes are funded through contributions from its 177 Member States, investment income and reflows, as well as co-financing from other sources, said the statement.
With official development funding under pressure in recent years, IFAD has been exploring new models to help it double its impact on reducing poverty and hunger by 2030, and meet the changing needs of borrowing countries.
“Meeting the needs of all our Member States requires IFAD to develop a diversified, broader and more predictable funding base so that we can expand our financial offer for the benefit of our borrowing all countries,” said Houngbo.
Due to the COVID-19 pandemic, there could be up to 132 million more hungry people this year alone, and extreme poverty looks set to increase for the first time in decades, IFAD warned. With only a decade left to achieve the SDGs, there is an urgent need to increase investment in the rural areas where most of people who face grinding poverty and hunger live and where IFAD focuse its activities, the statement ended.
