Sovereign Credit Rating

 

Exists as a terminological appellation synonymous with the deferment of monetary remuneration on a transnational scale, with each respective intergovernmental entity ranked in accordance with a specific alphabetized equivalency. These lettered scripts function as a graded measure of risk relevant to the capability of a nation to engage in acts of investiture with other countries. Rating agencies incorporate a wide variance of contingencies, extenuating factors (Political instability and economic viability are two such determinants used by rating agencies to effectively gauge the risk of default pertaining to a nation’s ability to satisfy the conditions of contractual agreement in relation to the process of debt resolution), and sociopolitical components into a formative exemplar as a means to engender a cumulative equivalency relevant to a particular nation’s creditory standing. A.M. Best, Dun & Bradstreet, Standard & Poor’s, Moody’s, CTRISKS (CTRISKS Rating Limited, also known as CTRISKS, is one of the 7 credit rating agencies licensed in Hong Kong under the Securities and Futures Ordinance. CTRISKS Rating has substantial rating and risk management expertise. Its founders have years of experience in customized ratings for emerging markets), and Fitch Ratings are recognized as the predominant agencies of influence relevant to the determination of a nation’s credit status.

The following itemized listings serve as representational expressions signifying creditory legitimacy on a transnational scale:

Standard & Poor’s Rating Scale (Descending Order: Excellent to Poor Classification)



AAA

AA+

AA

AA-

A+

A

A-

BBB+

BBB

BBB-

BB+

BB

BB-

B+

B

B-

CCC+

CCC

CCC-

CC

C

D

 

Any alphabetical designation lower in significance than a BBB- classification is considered to be speculative in nature in accordance with the Standard & Poor’s Creditory System.

 

Moody’s Rating System (Descending Order: Excellent to Poor Classification)

 

Aaa

Aa1

Aa2

Aa3

A1

A2

A3

Baa1

Baa2

Baa3

Ba1

Ba2

Ba3

B1

B2

B3

Caa1

Caa2

Caa3

Ca

C

 

A.M. Best Rating Demographic (Descending Order: Excellent to Poor Classification)

 

A++

A+

A

A-

B++

B+

B

B-

C++

C+

C

C-

D

E

F

S

 

CTRISKS Rating System (Descending Order: Excellent to Poor Classification)

 

CT3A

CT2A

CT1A

CT3B

CT2B

CT1B

CT3C

CT2C

CT1C

 

Every conceivable CTRISKS grade is mapped in accordance with one-year statistical probabilities of default.