Sovereign Credit Rating

  • A sovereign credit rating is credit rating of country or sovereign entity.
  • It gives investors insight into level of risk associated with investing in particular country, including its political risk.
  • At request of country, credit rating agency evaluates country’s economic and political environment to determine representative credit rating.
  • Obtaining good sovereign credit rating is usually essential for developing countries in order to access funding in international bond markets.
  • Fitch Ratings, Moody’s Investors Service and Standard & Poor’s (S&P) are big three international credit rating agencies controlling approximately 95% of global ratings business

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top