Fitch said multilateral banks could lend up to $480 billion more before the downgrade.

(Reuters) – The 12 largest multilateral development banks could lend a total of $5 trillion more before facing a downgrade, Fitch said in a report on Wednesday after reviewing its rating criteria for supranational institutions.

Multilateral lenders “could collectively lend approximately $480 billion more” before being downgraded due to cash shortages, the ratings agency said, according to Fitch’s report. MDB is an international bank established by several countries to develop the economies of low- and middle-income countries.

Nonetheless, Fitch sees multilateral arrangements continuing to perform well within the limitations of their ratings, meaning Fitch does not expect them to fully utilize their lending headroom.

The International Bank for Reconstruction and Development, a World Bank Group lender, could lend an additional $117 billion, or 47% of the bank’s current exposure, and the Asian Development Bank, according to Fitch. Bank) and the European Investment Bank respectively.

The report said both the Asian Infrastructure Investment Bank (ASIB) and the New Development Bank could more than double the bank’s current exposure without running into a deficit in its cash positions. The overall figure would increase the bank’s exposure to 12 lenders by 37%, Fitch said.

“MDB is reviewing its capital adequacy framework in response to shareholder demands to increase its development impact,” the report said. “Fitch expects MDBs to respond by making some adjustments to their capital management while maintaining capital ratios in line with their higher ratings.”

This year, leaders of 10 MDBs pledged to take action in five critical areas, including a total of $300 billion to $400 billion in additional lending capacity over the next decade.