--%>
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 : Firm cross-listed on foreign stock

    Explain why and how a firm’s capital cost can be reduced when stock of firm is cross-listed on foreign stock exchanges.

    		•
  • Q : Techniques of valuation of goodwill

    Techniques of valuation of goodwill: A) Average profit technique B) Super profit technique C) Capitalization technique

    		•
  • Q : Computing the credit rating List some

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

    		•
  • Q : Define Asset Purchase Asset Purchase :

    Asset Purchase: Agreement between seller and buyer to obtain an organization's assets. In an asset purchase, only particular assets transfer ownership from seller to the buyer. Assets should be re-titled to the latest owner who has the capability to d

    		•
  • Q : Forecast future and forward exchange

    It is extremely difficult in order to forecast future exchange rates more precisely as compared to forward exchange rate or to the current spot exchange rate, as per the researchers. How these findings can be interpreted?

    		•
  • Q : Japanese investments in the Southeast

    Japanese MNCs, like Toshiba, Toyota, Matsushita, and so on, made extensive investments within the Southeast Asian countries such as Malaysia, Thailand, and Indonesia. State your opinion, what forces are making Japanese investments within the region?

    		•
  • Q : What is Corporate Social Responsibility

    Corporate Social Responsibility directly states that every company is responsible towards the society and the environment. So this is a duty of every company to create eco-friendly new products. In the current scenario when the fuel prices are increas

    		•
  • Q : Define Financial Calculator Financial

    Financial Calculator: A financial calculator is an electronic calculator which executes financial functions commonly required in business and commerce communities.

    		•
  • Q : Wind turbine I have started to design a

    I have started to design a wind turbine but I am stuck now. I would like you to have a look to my design and tell me what do I have to do.

    		•
  • Q : Define Liabilities Liabilities mean the

    Liabilities mean the amount which the firm owes to the outsiders. Liabilities are of two types: -Long term liabilities & Short term liabilities. Examples of long term liabilities are long terms loans, bonds etc. & examples of short term liabil

    		•