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 of these changes, or clarifications as the case may be, it is helpful to take a broader look at the meaning of ratings and the rationale for the earlier policies. Ratings, of course, are evaluations...

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222