Sovereign Credit Rating

The current degradation of sovereign balance sheets raises concerns about how sovereign creditworthiness is measured by credit rating agencies. Developing an innovative new methodology, this book shows that the ratings by major credit rating agencies show alarming inconsistencies. Countries can find themselves battling with speculative status due to approximation and subjectivity within the process itself. Aimed at researchers and advanced students in corporate governance, accounting, public finance and regulation, this book offers an alternative and calls for more transparency about the quantitative measures used in calibrating the rating process and how sovereign ratings are validated.