Sovereignty rating means that rating agencies evaluate the political, economic and credit ratings of sovereign institutions (usually sovereign countries) according to certain procedures and methods, and use certain symbols to express the rating results. The essence of national sovereign credit rating by credit rating agencies is to judge the credit will 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. On the evening of August 5th, 2065438+0/KLOC-0, Standard & Poor's said that it would downgrade the US sovereign credit rating from AAA to AA+ for fear of the US budget deficit.

Rating content

National sovereign rating is popular internationally, which reflects a country's willingness and ability to repay its debts. The content of sovereign rating is very extensive. In addition to analyzing the growth trend of a country's GDP, foreign trade, balance of payments, foreign exchange reserves, foreign debt volume and structure, fiscal revenue and expenditure, policy implementation and other factors that affect the country's repayment ability, it is also necessary to analyze the financial burden caused by financial system reform, state-owned enterprise reform and social security system reform, and finally make a rating. According to international practice, the national sovereign level is listed as the upper limit of the rating of foreign currency bonds issued by domestic units, and shall not exceed the national sovereign level. The country's sovereign credit rating specifically involves sovereign rating: the national upper limit rating of long-term and short-term foreign currency debts and the national upper limit rating of long-term and short-term foreign currency bank deposits. In view of the risk of foreign currency transfer and national system risk, the national ceiling rating represents the highest rating that foreign currency issuers can obtain. In addition, it also involves the rating of government long-term bonds in foreign currency and local currency. Sovereignty rating standards range from AAA to C.