ROME - Fitch Ratings confirmed the International Fund for Agricultural Development's (IFAD) Long-Term Issuer Default Rating (IDR) at 'AA+' with a Stable Outlook.

According to Fitch’s Rating Action Commentary, “IFAD's AA+ Long-Term IDR continues to be anchored on its Standalone Credit Profile (SCP). IFAD's SCP assessment is driven by its solvency (aa+) and liquidity (aa+) profiles, which are unchanged from last year.”

In addition, Fitch expects IFAD's equity/assets ratio and the fund's usable capital/risk-weighted assets ratio “to remain well above the 'excellent' thresholds in the medium term, despite the fund gradually increasing its leverage.”

This news comes as IFAD, a UN specialized agency and international financial institution, embarks on an ambitious replenishment of its funds for the period 2025-2027, with goals to deepen its impact and help millions more people move out of poverty and hunger – now more important than ever as the number of hungry rises, poverty remains intractable and climate change intensifies in many parts of the world.

“The affirmation of our strong rating reflects the solid financial capacity of the institution to continue servicing our recipient countries within a very uncertain economic outlook. This is a testament to IFAD’s financial evolution and shall constitute an additional incentive to the continuing supportive response we are seeing from our Members during the ongoing replenishment consultations,” said Hernán Danery Alvarado, IFAD’s Associate Vice-President of IFAD’s Financial Operations Department and Chief Financial Officer and Controller.

Global leaders increasingly recognize IFAD as a crucial player in the fight against hunger and poverty. The recent declaration adopted by the G20 leaders in New Delhi this month emphasized IFAD’s role in the “fight against food insecurity,” and encouraged member states to replenish the UN Fund's resources at the end of the year. President of France Emmanuel Macron, who is championing IFAD’s replenishment, has called for an ambitious replenishment of IFAD in several global fora while Janet Yellen, United States Secretary of the Treasury, reiterated the criticality of IFAD to alleviate rural poverty in the face of a changing climate.

To complement Official Development Assistance, which is increasingly constrained by tight public budget and difficult economic global outlook, IFAD has explored new funding models in recent years to channel more resources to vulnerable rural populations in low- and middle-income countries. After having obtained two AA+ credit ratings in 2020, IFAD issued its first sustainable bond in June 2022. It became the first United Nations Fund and the only UN body and specialized agency other than the World Bank Group to operate in capital markets.

IFAD provides loans and grants to governments for rural development programmes, helping rural populations adapt to climate change, boost and diversify their production sustainably, and access markets, technologies and finance which they desperately need to earn a living income and move out of hunger and poverty. Through its operations, IFAD supports 16 out of 17 Sustainable Development Goals.