Sovereign Credit Ratings

Sovereign credit ratings are evaluations of a country's ability to meet its debt obligations. Ratings, provided by agencies like Moody’s, Standard & Poor’s, and Fitch, assess factors like economic stability, political risk, and financial management. A higher rating indicates a lower risk of default, making it cheaper for the country to borrow money. Conversely, a lower rating can lead to higher borrowing costs and difficulties in securing funding. These ratings influence investor confidence and can impact the country's economic growth and development.