Sovereign Credit Rating - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Sovereign Credit Rating write by Ahmed Naciri. This book was released on 2016-12-19. Sovereign Credit Rating available in PDF, EPUB and Kindle. The current degradation of sovereign balance sheets raises very real concerns about how sovereign creditworthiness is measured by credit rating agencies. Given the disastrous economic and social effects of any downgrade, the book offers an alternative and calls for more transparency about the quantitative measures used in calibrating the rating process and how sovereign ratings are validated. It argues that oversight is required and procedures improved, including subjecting methodologies of assessing default to more standardization and monitoring. Sovereign Credit Rating explains the process of sovereign creditworthiness assessment and explores the consequences of possible inaccuracies in the process. Developing an innovative new methodology to assess ratings accuracy, it shows that the announcement of each rating action by the major credit rating agencies show alarming inconsistencies. Written by an internationally recognized author and professor, this unique book will be of interest to researchers and advanced students in corporate governance, accounting, public finance and regulation.
Sovereign Credit Ratings Methodology
Sovereign Credit Ratings Methodology - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Sovereign Credit Ratings Methodology write by Ashok Vir Bhatia. This book was released on 2002. Sovereign Credit Ratings Methodology available in PDF, EPUB and Kindle.
A Century of Sovereign Ratings
A Century of Sovereign Ratings - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook A Century of Sovereign Ratings write by Norbert Gaillard. This book was released on 2011-09-21. A Century of Sovereign Ratings available in PDF, EPUB and Kindle. The financial difficulties experienced by Greece since 2009 serve as a reminder that countries (i.e., sovereigns) may default on their debt. Many observers considered the financial turmoil was behind us because major advanced countries had adopted stimulus packages to prevent banks from going bankrupt. However, there are rising doubts about the creditworthiness of several advanced countries that participated in the bailouts. In this uncertain context, it is particularly crucial to be knowledgeable about sovereign ratings. This book provides the necessary broad overview, which will be of interest to both economists and investors alike. Chapter 1 presents the main issues that are addressed in this book. Chapters 2, 3, and 4 provide the key notions to understand sovereign ratings. Chapter 2 presents an overview of sovereign rating activity since the first such ratings were assigned in 1918. Chapter 3 analyzes the meaning of sovereign ratings and the significance of rating scales; it also describes the refinement of credit rating policies and tools. Chapter 4 focuses on the sovereign rating process. Chapters 5 and 6 open the black box of sovereign ratings. Chapter 5 compares sovereign rating methodologies in the interwar years with those in the modern era. After examining how rating agencies have amended their methodologies since the 1990s, Chapter 6 scrutinizes rating disagreements between credit rating agencies (CRAs). Chapters 7 and 8 measure the performances of sovereign ratings by computing default rates and accuracy ratios: Chapter 7 looks at the interwar years and Chapter 8 at the modern era. The two chapters assess which CRA assigns the most accurate ratings during the respective periods. Chapters 9 and 10 compare the perception of sovereign risk by the CRAs and market participants. Chapter 9 focuses on the relation between JP Morgan Emerging Markets Bond Index Global spreads and emerging countries’ sovereign ratings for the period 1993–2007. Chapter 10 compares the eurozone members’ sovereign ratings with Credit Default Swap-Implied Ratings (CDS-IRs) during the Greek debt crisis of November 2009–May 2010.
Rating Politics
Rating Politics - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Rating Politics write by Zsófia Barta. This book was released on 2023-04-03. Rating Politics available in PDF, EPUB and Kindle. How do countries' political and policy choices affect the credit ratings they receive? Sovereign ratings influence countries' cost of funding, and observers have long worried that rating agencies - these unelected, unappointed, unaccountable, for-profit organizations - can interfere with democratic sovereignty if they assign lower ratings to certain political and policy choices. The questions of whether, how, and why ratings react to policy and politics, however, remain unexplored. Rating Politics opens the black box of sovereign ratings to uncover the logic that drives rating responses to political and policy factors. Relying on statistical analysis of rating scores, interviews with sovereign rating analysts, and a close reading of the official communications of rating agencies about their decisions, Zsófia Barta and Alison Johnston show that ratings penalize center-left governments and many (though not all) policies associated with the center-left agenda. The motivation for such penalties is not rooted in assumptions about how those political and policy features affect growth and debt servicing capacity. Instead, ratings are lower in the presence of those features because they are expected to make a country more vulnerable to market panics whenever the economy is hit by unforeseen shocks, as they signal insufficient willingness and/or ability to engage in determined austerity for the sake of reassuring markets. Since market panics and the resulting "sudden stops" of funding lead to humiliating collapses of ratings, rating agencies attempt to insure themselves against "rating failures" by pre-emptively assigning lower ratings to countries with the "wrong" political and policy mix.
Methodology for Assigning Credit Ratings to Sovereigns
Methodology for Assigning Credit Ratings to Sovereigns - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Methodology for Assigning Credit Ratings to Sovereigns write by Philippe Muller. This book was released on 2017. Methodology for Assigning Credit Ratings to Sovereigns available in PDF, EPUB and Kindle. "This paper provides a detailed technical description of a methodology designed to assign internal credit ratings to sovereigns using only publicly available data. Our sovereign rating methodology relies on fundamental credit analysis that produces a forward-looking and "through-the-cycle" assessment of a sovereign's capacity and willingness to pay its financial obligations, resulting in an opinion on the relative credit standing or likelihood of default. The paper focuses on the components of the methodology that are new to the science of credit risk assessment for sovereigns, and includes components that have been borrowed from the existing literature. The authors intend for this paper to support efforts by reserve managers and other investors to go beyond mechanistic reliance on credit rating agency (CRA) ratings and instead establish or strengthen internal credit assessment practices. The methodology presented can be used by credit risk practitioners to assess the relative credit quality of a sovereign. Moreover, this framework is flexible enough to accommodate modifications that cater to specific needs"--Introd., p. 2.
