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A sovereign credit rating is credit rating of country or sovereign entity.
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It gives investors insight into level of risk associated with investing in particular country, including its political risk.
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At request of country, credit rating agency evaluates country’s economic and political environment to determine representative credit rating.
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Obtaining good sovereign credit rating is usually essential for developing countries in order to access funding in international bond markets.
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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