What is the background of Poole Company? How does Standard & Poor's measure the national sovereign credit rating? What are the sovereign credit ratings of major countries in the world? Seek an answer

Standard &; Poor's) is a global financial market information provider, providing credit rating, index services, investment research, risk assessment and data services. Standard & Poor's provides ratings for about $32 trillion of debt securities and 79 major index series in more than 65,438+000 countries around the world. The Standard & Poor's 500 Index is well known to investors. The Standard & Poor's Global 1200 Index involves securities in 3 1 market, covering about 70% of the global capital market share. At present, S&P has about 8,500 employees in 23 countries, and the company is headquartered in new york, USA.

In fact, it is a place similar to China Shanghai Stock Exchange! ! !

Standard & Poor's company's rating of sovereign credit is mainly divided into investment grade and speculative grade, in which the investment grade includes AAA, AA sequence, A sequence and BBB sequence, while the speculative grade is divided into BB sequence, B sequence, CCC sequence, CC, C and D, and the credit grade is ranked from high to low, with AAA being the highest. The lowest level of D is considered a violation of the terms. From AA to CCC, each level can be displayed by adding "+"or "-". For example, in the AA sequence, the credit rating from high to low is AA+, AA, AA-.

In addition, Standard & Poor's also gave an outlook on the credit rating, showing the agency's assessment of the future (usually 6 months to 2 years) credit rating trend. The main factors that determine the rating prospects include changes in economic fundamentals.

Outlook includes positive (the future rating may be upgraded), negative (the future rating may be downgraded), stable (the future rating will remain unchanged), wait and see (the future rating may be downgraded or upgraded) and meaningless. For example, the US sovereign credit rating is downgraded and the rating outlook is negative, which means that the US sovereign credit rating may still be further downgraded in the next 12 to 18 months.

In addition, Standard & Poor's will release a credit watch to show its judgment on the potential trend of rating. Credit observation is divided into positive (rating may be upgraded), negative (rating may be downgraded) and observation (rating may be upgraded or downgraded).

Rating status

Investment-grade rating has the characteristics of high reputation and high investment value, while speculative rating has a low credit degree and the default risk increases step by step. Because of the high risk, speculative bonds often have a high risk premium, so they are more suitable for speculation.

In S&P's definition of rating, AAA refers to the borrower with the highest credit rating, the highest quality and reliable and stable credit. AA level also has strong performance ability, but the credit degree is slightly lower and the credit risk is slightly higher.

At present, the three major international rating agencies involved in sovereign credit rating business are Fitch, Standard & Poor's and Moody's.

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