Sovereign risk assessment and agency credit ratings |
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| Authors: | Richard Cantor Frank Packer |
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| Affiliation: | Capital Markets Department, Federal Reserve Bank of New York, 33 Liberty Street, New York, NY 10045, USA |
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| Abstract: | Sovereign ratings are gaining importance as more governments with greater default risk borrow in international bond markets. However, while the ratings have proved useful to governments seeking market access, the difficulty of assessing sovereign risk has led to agency disagreements and public controversy over specific rating assignments. Recognising this difficulty, the financial markets have shown some scepticism toward sovereign ratings when pricing issues. |
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| Keywords: | sovereign ratings Moody's and Standard and Poor's sovereign risk assessments market yields |
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