Analysis of Sovereign and Country Risk

This two-day course covers the publicly available credit rating methodologies of our sister company, Moody's Investors Service, for a structured approach to assess sovereign and country risks in mature and developing markets. Moody’s Investors Service publishes credit ratings to provide its opinion on the creditworthiness of issuers and their debt, including sovereigns. These include country ceilings for foreign and local currency bonds and notes, and for foreign and local currency bank deposits, as well as government bond ratings. Seminar participants gain a detailed understanding of analytical methodologies used by Moody's Investors Service for assessing sovereign and country risks in mature and developing markets. Content goes beyond how the ratings process is applied by Moody's Investors Service to provide a complete understanding of the topic. Understand how sovereigns prepare financial statements. Apply a structured framework to analyze banking institutions in mature and developing markets. Interpret quantitative and qualitative risk drivers. Understand country ceilings.

Apply lessons from historical defaults and moratoriums. Identify political and macroeconomic factors and their part in influencing a credit rating. Appreciate the drivers of country risk and their impact on corporate credits. Evaluate external support (such as from the International Monetary Fund, the European Stability Mechanism, and the Chang Mai Initiative). Consider modeling applications for sovereign risk. Determine a final credit assessment of a sovereign