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Shadow Sovereign Ratings

Author

Listed:
  • Sanket Mohapatra
  • Otaviano Canuto
  • Dilip Ratha

Abstract

Sovereign ratings are a necessary condition for countries to fully access international capital. Even if the sovereign government is not issuing bonds, the sovereign rating often acts as a ceiling for the private sector and can influence its international capital market access. However, 58 developing countries are still not rated by Standard and Poors, Moodys, and Fitch, the three international credit rating agencies. This premise presents an exercise to predict shadow sovereign ratings to estimate where unrated countries would lie on the credit spectrum if they were rated. Contrary to popular perception, unrated countries are not necessarily at the bottom of the rating spectrum.
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Suggested Citation

  • Sanket Mohapatra & Otaviano Canuto & Dilip Ratha, 2011. "Shadow Sovereign Ratings," World Bank Publications - Reports 10080, The World Bank Group.
    • Handle: RePEc:wbk:wboper:10080
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    References listed on IDEAS

    as
    1. Alexander Lehmann, 2004. "Sovereign Credit Ratings and Private Capital Flows to Low‐income Countries," African Development Review, African Development Bank, vol. 16(2), pages 252-268.
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    6. Carmen M. Reinhart, 2002. "An Introduction," The World Bank Economic Review, World Bank, vol. 16(2), pages 149-150, August.
    7. Canuto, Otaviano & Mohapatra, Sanket & Dilip Ratha, 2011. "Shadow Sovereign Ratings," World Bank - Economic Premise, The World Bank, issue 63, pages 1-6, August.
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    Keywords

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    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • F3 - International Economics - - International Finance
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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