--%>
Assignment Help - homework help

Computing the credit rating

List some of the factors does Standard & Poor’s analyzes in computing the credit rating it assigns a sovereign government?

E

Expert

Verified

While rating the sovereign government, S&P’s analysis centers over examination of degree of economic risk and political risk.  In assessing political risk, S & P computes the stability of the social environment, political system, and international relations with other countries. Factors during examining the economic risk have sovereign’s external financial position, balance of payments flexibility, management of the economy, economic structure and growth, and economic prospects.  Rating which is assigned to a sovereign is mainly important since it typically presents the ceiling for ratings S&P may assign an obligation of an entity domiciled in that particular country.

   Related Questions in Financial Accounting

  • Q : Monetary approach to determine exchange

    Derive and explain monetary approach in order to determine the exchange rate.

    		•
  • Q : Theory of comparative advantage Specify

    Specify the considerations that could bound extent to which theory of the comparative advantage is practical?

    		•
  • Q : Development phases of Friendship There

    There are six developmental phases of how friendships develop. Identify each phase in sequence and discuss the characteristics of each phase by using real or hypothetical example to illustrate this developmental path.

    		•
  • Q : Re-measurement and translation

    Explain the re-measurement and translation procedure in FASB 52 of translating to the reporting currency the books of the entirely owned affiliate which maintains its books in local currency of country in which it operates, that is different from its functional curren

    		•
  • Q : PPE The following information is taken

    The following information is taken from the financial statements of an entity: 20x4 20x3 Property, plant and equipment $4,600,000 $4,200,000 Accumulated depreciation (1,800,000) (1,350,000) Depreciation expense 560,000 Gain on disposal of PPE 65,000 The asset disposed of had a cost

    		•
  • Q : Project Advantages-disadvantages of

    Advantages-disadvantages of internal rate of return method

    		•
  • Q : Evaluated Receipt Settlement What do

    What do you mean by Evaluated Receipt Settlement?

    		•
  • Q : What is Asset Management Asset

    Asset Management: The Asset management has two common definitions, one associating to advisory services and the other associated to corporate finance. In the initial instance, an advisor or financi

    		•
  • Q : Ihi Which of the following adjustments

    Which of the following adjustments is an example of an accrual adjustment? an asset/expense adjustment involving depreciation an asset/expense adjustment involving insurance a liability/expense adjustment involving utility expenses a liability/revenue adjustment involving unearned revenues

    		•
  • Q : Freedmens Bureau What did Freedmen’s

    What did Freedmen’s Bureau do?

    		•