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Sovereign risk assessment and agency credit ratings

European Financial ManagementPublished 1 July 1996
Richard Cantor, Frank Packer
Citations88
SJR quartileQ1
SJR score1.14
SNIP1.53

Abstract

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.

Keywords

Economics, Econometrics and Finance