Sovereign Ratings

Sovereign ratings assess a country's ability to meet its debt obligations, serving as a gauge of financial stability and creditworthiness. Agencies like Moody’s, S&P, and Fitch assign letter grades (e.g., AAA, BB) to indicate how likely a country is to repay its debt on time. A high rating suggests low risk, attracting investment, while a lower rating indicates higher risk, potentially increasing borrowing costs. These ratings help investors, governments, and lenders make informed decisions about lending or investing in that country’s bonds and debt instruments.