Sovereign Credit Ratings

Cantor, Richard; Packer , Frank

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Sovereign Credit Ratings

Current Issues in Economics and Finance, Vol. 1, No. 3, June 1995

6 Pages Posted: 19 Jul 2007

See all articles by Richard Cantor

Frank Packer

Bank for International Settlements (BIS)

Abstract

Sovereign ratings are gaining importance as more governments with greater default risk borrow in international bond markets. But 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. Recognizing this difficulty, the financial markets have shown some skepticism toward sovereign ratings when pricing issues.

Keywords: Sovereign ratings, default risk, International bond markets

JEL Classification: E44, F34

Suggested Citation: Suggested Citation

Cantor, Richard Martin and Packer, Frank, Sovereign Credit Ratings. Current Issues in Economics and Finance, Vol. 1, No. 3, June 1995, Available at SSRN: https://ssrn.com/abstract=1001511