Sovereign Credit Rating

Credit ratings provide insight regarding the level of risk associated with a particular country.

• Credit rating agencies offer information about whether bond issuers can meet their future obligations

• There are three major rating agencies: Standard & Poor's, Moody's, and Fitch

Investment Grades per Agency

□ Moody’s considers a Baa3 or higher rating to be of investment grade, Ba1 and below is considered speculative

□ Standard & Poor's considers BBB- or higher rating to be investment grade, and BB+ or lower is considered to be speculative or "junk" grade

□ Fitch, like S&P, considers BBB- or higher rating to be investment grade, and BB+ or lower is considered to be speculative or "junk" grade

CENTRAL BANKS AND WEBSITES

 A central bank is an institution providing financial stability for the economy. Central banks are responsible for implementing their country's monetary policy by adjusting the level of interest rates.

• Central banks adjust the level of interest rates to achieve price stability and high employment in the economy
• Most major central banks target a 2-3% annual inflation rate

Responsibilities & Policies