--%>
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 : Capital budgeting analysis State some

    State some of the problems which may enter into capital budgeting analysis in case project debt is computed rather than borrowing capacity made by the project?

    		•
  • Q : Adjunct Account What do you mean by the

    What do you mean by the term Adjunct Account?

    		•
  • Q : Transaction and Economic exposure

    Define transaction exposure and explain how it is different from the economic exposure?

    		•
  • Q : Rule of nominal account Why the rule of

    Why the rule of nominal account is just opposite with the rule of personal account and real account?

    		•
  • Q : Case study of Drug free at Monochem

    Read the case study entitled ‘Drug-Free and Alcohol-Free at Monochem, Inc. and answer the following questions. 1) Suppose John has developed the ethical codes for the company with an objective of creating a d

    		•
  • Q : Investment approach of Bill Miller

    Investment approach of Bill Miller: In comparison to both Warren Buffet and Peter Lynch, Miller is considered to be a slightly more aggressive investor.  Miller believed in playing big which meant that he used

    		•
  • Q : Accountancy Accountancy is the process

    Accountancy is the process of communicating financial information about a business entity to users such as shareholder and manager. The communication is generally in the form of financial statements that show in money terms the economic resources under the control of management; the art lies in s

    		•
  • Q : What is forfaiting transaction What is

    What is meant by the forfaiting transaction?

    		•
  • Q : Ppe Question 3 The following

    Question 3 The following information is taken from the financi al statements of an entity: 20x6 20x5 Property, plant and equipment $4,100,000 $3,600,000 Accumulated depreciation (1,400,000) (1,050,000) Depreciation expense 650,000 Gain on disposal of PPE 35,000 The asset disposed of had

    		•
  • Q : Maximum factors Explain the Maximum

    Explain the Maximum factors influences and involvement which will depend on the performance and success of the employees ?

    		•