Don't WAIT!

Friday, May 1, 2015

Delta From KTFA: "How Standard and Poors Rate Sovereigns"

DELTA: » May 1st, 2015, 9:44 pm 

HELLO FAMILY... I GOT YOU SOME INFORMATION ON HOW STANDARD AND POORS RATE SOVEREIGNS.

I HAVE THE LINK FOR YOU .

IT'S VERY CLEAR THAT IRAQ NEED AN INTERNATIONAL RATE BEFORE THEY GET THE CREDIT RATING, ALSO THE WHOLE PROCESS COULD TAKE 4-6 WEEKS.
....
HOW WE RATE SOVEREIGNS

STANDARD AND POOR'S

The three factors that are the key drivers of a sovereign's economic score are our view of its income levels, growth prospects, and its economic diversity and volatility.

Three factors also drive a sovereign's external score, namely our view of the status of a sovereign's currency in international transactions, the sovereign's external liquidity, and its external indebtedness, which shows residents' assets and liabilities relative to the rest of the world.


The fiscal score reflects our view of the sustainability of a sovereign's deficits and its debt burden. This measure considers fiscal flexibility, long-term fiscal trends and vulnerabilities, debt structure and funding access, and potential risks arising from contingent liabilities.

Given the many dimensions that this score captures, the analysis is divided into two segments, "fiscal performance and flexibility" and "debt burden."

The main drivers of the monetary score are our view of the monetary authority's ability to use monetary policy to address domestic economic stresses, particularly through its control of money supply and domestic liquidity conditions; the credibility of monetary policy, as measured by inflation trends; and the effectiveness of mechanisms for transmitting the impact of monetary policy decisions to the real economy, largely a function of the depth and diversification of the domestic financial system and capital markets.

THE INITIAL RATING PROCESS

The initial rating process typically takes four to six weeks to complete, but can run longer or shorter. This initial process begins when the contract is signed and generally ends with the publication of the rating.


The rating process consists of several discrete steps and typically includes a series of ongoing information exchanges between the ratings agency and the issuer.


These interactions enable Standard & Poor's to gather the information it needs to conduct its evaluation and form its rating opinion.

http://ift.tt/1IxrB2x

DELTA



via Dinar Recaps - Our Blog http://ift.tt/1IxrBiM

No comments:

Post a Comment