Sovereign Risk Group

Sovereign Risk Group refers to the risk associated with a country's ability to meet its debt obligations. This includes the likelihood that a government might default on its loans or fail to fulfill financial commitments. Factors like political stability, economic health, and fiscal policies influence this risk. Investors and financial institutions assess sovereign risk when making decisions about lending to or investing in a country. A high sovereign risk can lead to higher borrowing costs for a nation, while a low risk can attract investment and lower interest rates.