The sovereign ceiling: Now a broad consensus on its permeability

Jonathan Golin, author of ''The Bank Credit Analysis Handbook: A Guide for Analysts, Bankers and Investors'', delves into the ratings policies of various agencies.

Recently, Fitch, Moody's Investors Service, and Standard  Poor's announced several changes or clarifications to their ratings policies in regards to the sovereign ceiling and bank ratings. In June 2001, both Moody's and Fitch, and on July 23, Standard Poor's, clarified their policies towards the sovereign ceiling.i While some of these changes apply to ratings generally, our concern in this comment is particularly with the impact they have on bank ratings.

But before exploring the significance...

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