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Sovereign Credit Rating Methodology
Monday, 19 November 2018

This rating methodology explains ACRA Europe’s approach to assigning credit ratings to sovereign issuers and issues using an international rating scale. ACRA Europe’s sovereign model combines a set of quantitative indicators, a core part, and a set of qualitative and quantitative modifiers, an adjustment part, which corrects the indicative rating provided by the core feature. Both the core model and the adjustment use the most relevant macroeconomic variables that, in ACRA Europe’s opinion, aptly explain the creditworthiness a sovereign entity. The weights within each block of the core part of the model as well as between each block indicate ACRA Europe’s view on the importance of each block and the factors within them in the final sovereign credit rating.

Download Methodology to assess Sovereign entities.pdf