Is it possible for an issuer or issue to be assigned a rating above its sovereign government on a regional scale?
Like our global scale, it is possible for certain issuers with very strong credit, including, for example, issuers in the ASEAN market with international sources of support for their credit quality, to get a higher rating than the government of their country of domicile on the regional scale. This analysis is performed on a case-by-case basis, and there is not any rigid constraint or “ceiling” on the ratings of other debt issuers. The pertinent approach that Standard & Poor’s will apply is the transfer and convertibility risk assessment (T&C assessment) criteria, as described in the following article: “Ratings Above The Sovereign: Foreign Currency Rating Criteria Update,” published on RatingsDirect on Nov. 3, 2005.
Related Questions
- How is the Ontario government solving the possible issue of space in schools that don have the capacity to absorb children in full-day kindergarten?
- Does a change in a global scale rating on a ASEAN sovereign necessarily cause a change of ratings on the regional scale?
- How do I file a sovereign bond if the sovereign issuer does not have an NRSRO rating?
