Rating of sovereign

The rating analysis provides the concerned entities with information and independent view on whether the national governments possess stable and measurable economic attributes and it allows for an assessment of their creditworthiness to international creditors. Credit risk in the context of sovereign-rated entities relates to both the ability and willingness to pay.

What are the benefits of rating sovereign and what does the rating serve for:
Rating as an investment analysis

  • ERA uses International Rating Scale that allows for relative comparison of rated entities according to the degree of credit risk faced by the creditors of rated entities.

Rating as a report on the economic activity of the sovereign

  • It is a comprehensive analytic document that illustrates historical development and situation of the sovereign from the aspect of an independent evaluator based on international criteria.

Rating as an instrument of operative control

  • It provides with immediate information on the situation of the sovereign

The rating process consists of gathering and processing of reference documents connected to the sovereign, of analysis and evaluation of reference documents by the rating agency and of approval of the rating by the rating committee.
The rating analysis remains valid for the period of 1 year and during this period the sovereign is being monitored by the rating agency.
The content of the rating report includes effects determining and affecting the sovereign, such as development of macroeconomic environment, development of forward-looking factors, modifiers and evaluation of the sovereign itself.