Sovereign credit rating is the credit rating agency's evaluation of a government's credit willingness and ability to fulfill its debt service obligations as a debtor. The three major international rating agencies involved in sovereign credit rating business are Fitch, Standard & Poor's and Moody's. On the morning of August 6th, 2065438+0/KLOC-0, Beijing time, Standard & Poor's, one of the three major international rating companies, announced that it would downgrade the US sovereign credit rating.
From AAA to AA+, the rating outlook is negative, which is the first time in nearly a hundred years. The essence of national sovereign credit rating by credit rating agencies is to judge the credit willingness and ability of the central government as a debtor. As the debt formed by the central government to overseas creditors, the credit rating agencies in the country where the creditors are located generally carry out national sovereign credit rating.
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Sovereign credit rating should not only analyze the growth trend of a country's GDP, foreign trade, balance of payments, foreign exchange reserves, total and structure of foreign debts, fiscal revenue and expenditure, policy implementation and other factors that affect its repayment ability, but also analyze the financial burden brought about by the reform of financial system, state-owned enterprises and social security system, and finally rate it.
Sovereign credit ratings are generally divided into AAA, AA, A, BBB, BB, B, CCC, CC and C from high to low. AA to CCC can be marked with+and-to indicate strength respectively. The credit rating agency Standard & Poor's 2011July16th said that it would upgrade the credit rating of China's long-term sovereign debt to AA-, which was previously rated as A+, and keep the credit outlook stable.