Fitch Ratings Dismisses China’s Calls for Multilateral Development Banks to Take Losses on Loans to Poor Countries

JOEL SAGET / AFP

One of the world’s most important credit ratings agencies, Fitch Ratings, warned investors that China’s demands for multilateral creditors to take losses on their loans to developing countries would undermine their all-important credit rating, but added there’s not much to worry about since Beijing remains isolated on the issue.

“The inclusion of multilateral development banks (MDBs) in sovereign debt restructurings under the G20 Common Framework, as demanded by China, could weaken the preferred creditor status of these lenders,” the agency wrote in a commentary published on Tuesday.

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by Eric Olander

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