Moody’s and S&P Expand Blended Finance Ratings, Opening Emerging Markets to Investment-Grade Capital
Updated
Updated · ImpactAlpha · Aug 6
Moody’s and S&P Expand Blended Finance Ratings, Opening Emerging Markets to Investment-Grade Capital
1 articles · Updated · ImpactAlpha · Aug 6
Summary
July 2026 reports from Moody’s and S&P show both agencies refining how they rate blended finance vehicles, a shift that could make more emerging-market deals eligible for institutional investors restricted to investment-grade assets.
Investment-grade ratings have already appeared in recent months: Moody’s gave the Global Gender-Smart Fund an A3 in April, S&P assigned AgDevCo an A- the same month, and Moody’s rated IFC’s second emerging-markets CLO Aaa and Aa1 in June.
Those ratings hinge on credit-enhancing features such as junior equity, guarantees, tranching and rated note feeders, which agencies now describe more explicitly in updated methodologies and cross-sector analyses.
Convergence argues progress could accelerate if donors help cover rating costs, fund managers engage agencies earlier, and DFIs avoid legal or maturity terms that weaken credit treatment.
The broader aim is to mobilize far more private capital into emerging markets and developing economies by turning blended finance structures into scalable, predictable investment-grade products.