nach oben

Erschienen in:

2012 | OriginalPaper | Buchkapitel

4. How Are Sovereign Ratings Assigned?

verfasst von : Norbert Gaillard

Erschienen in: A Century of Sovereign Ratings

Verlag: Springer New York

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

This chapter describes the rating process and emphasizes that CRAs have always used an analyst-driven approach to assign sovereign ratings.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Vorheriges Kapitel Definition, Typology, and Refinement of Sovereign Ratings

Nächstes Kapitel Moody’s Sovereign Ratings: 1918–1939 and 1986–2006 Compared

Moody’s Manual (1926), “Introduction,” p. vi.

Moody’s Investment Letter (1921), “The Foreign Situation,” 8 September.

Standard Statistics (1922), Standard Daily Trade Service, May.

Standard Statistics (1923), Standard Daily Trade Service, August.

As evidenced by browsing Poor’s Volumes and Fitch Bond Books.

After Poor’s went bankrupt and was refinanced by Paul T. Babson, the agency was headquartered in Wellesley (Massachusetts) until its merger with Standard Statistics in 1941.

David Levey (former Managing Director, Sovereign Risk Unit, Moody’s Investors Service) in an interview with the author on 16 December 2003 in New York.

Venezuela was rated Aaa by Moody’s when it defaulted.

“Moody’s Moves into Sovereign Debt Rating,” Australian Financial Review , 14 July 1986.

Information collected by the author during the S&P annual meeting in Paris, 24 June 2008.

In August 1996, Fitch, Duff & Phelps, and IBCA rated 1, 8, and 40 countries, respectively (Huhne 1996). In August 2001, Fitch rated 71 sovereigns.

Fitch Sovereign Brochure (undated document).

The exception was John Moody, who certainly had a strong influence on the rating process.

Investment Letters were renamed Investment Surveys in 1931 and Bond Surveys in 1936.

Unlike now, Moody’s publications then included lists of “attractive” bonds as well as recommendations on whether to sell, buy, or hold securities.

See Flandreau et al. ( 2010 ) for an exhaustive presentation of the products offered by the four agencies.

Moody’s FC sovereign ratings increased from 11 in 1985 to 34 in 1990.

“US Credit Rating Agency Is Considering Altering the Way It Expresses Its Assessments of Sovereign Borrowers,” Financial Times , 8 July 1988.

David Levey (former Managing Director, Sovereign Risk Unit, Moody’s Investors Service) in an interview with the author on 22 March 2010 in New York.

Since the International Organization of Securities Commissions (IOSCO) code was introduced in 2004, there has been a strict separation between analytical and commercial functions within every rating agency. Thus, analysts are supposed to be shielded from information about the fees being charged for their work (IOSCO 2004).

During the past decade, the number of countries monitored by a given analyst ranged from 8 to 15 (figures based on interviews with various sovereign rating analysts).

Since lower-ranking analysts can be lead analysts, this rule means that a lead analyst may not be allowed to vote.

See “Fitch Withdraws Iran Rating on Bond Payment,” Reuters, 24 April 2008.

Fitch (various years), Fitch Bond Books.

Fitch Ratings (undated), “Fitch Sovereign Brochure”.

Fitch Ratings (2006), “The Rating Process”, July.

Flandreau M., Gaillard N. and Packer F. (2010), “To Err Is Human: Rating Agencies and the Interwar Foreign Government Debt Crisis”, BIS Working Papers No. 335, December.

Huhne C. (1996), “Rating Sovereign Risk”, Bank of England, Financial Stability Review, Issue 1, Autumn.

International Organization of Securities Commissions (2004), Code of Conduct Fundamentals for Credit Rating Agencies, December.

Moody’s Investors Service (various years), “Investment Letters”.

Moody’s Investors Service (various years), Manuals of Government Securities.

Moody’s Investors Service (2004), “Guide to Moody’s Ratings, Rating Process, and Rating Practices”, June.

Moody’s Investors Service (2009), “Non-Participating Rated Issuers, February”.

Poor’s (various years), Poor’s Volumes.

Standard & Poor’s (2009), “Guide to Credit Rating Essentials”.

Standard Statistics (various years), Standard Bond Books.

Standard Statistics (various years), “Standard Daily Trade Services”.

Titel: How Are Sovereign Ratings Assigned?
verfasst von: Norbert Gaillard
Verlag: Springer New York
Buch: A Century of Sovereign Ratings
Print ISBN: 978-1-4614-0522-1

Electronic ISBN: 978-1-4614-0523-8

Copyright-Jahr: 2012
DOI: https://doi.org/10.1007/978-1-4614-0523-8_4