Could Sovereigns Be Really Rated?
Sovereigns are supreme. Credit rating could change that. The rating of a sovereign with regards to its credit worthiness or its ability to settle debttriggered liabilities could go a long way towards undermining the economic and political supremacy of that sovereign. Recent histories of sovereigns made humble by unfulfilled debt obligations are neither vague nor distant. The events of Greece may seem blurred in our minds of today but Ireland is very much in focus. And Portugal and Spain are not far off the finishing line. Even the mighty United States has suffered. United Stated credit rating was nudged down by no less than a Chinese key credit rating agency and the USA had to suffer the humility of relinquishing the first place to the likes of China and Japan. This is anything but a small feat as a reduction in sovereign rating could spell out higher debt Interest rates and tighter capital access conditions. What is sovereign credit rating, who does it and how is it done? What is wrong with the current practice and is there a room for improvement. This will be the focus of this article. The point of start is a definition of the concept. This is followed by a brief review of the different methods adopted by todays largely US based agencies and their pitfalls. The article concludes with a view of possible process adjustment and alternative process performers.
M.S.S.EI-Namaki
Dean, Victoria University, Switzerland
国际会议
2011 Academy for Global Business Advancement(AGBAs)8th World Congress(全球商务发展学会第八届国际会议)
大连
英文
457-457
2011-09-15（万方平台首次上网日期，不代表论文的发表时间）