Sovereign debt managers increasingly recognize the strategic role of active investor relations. In a global framework characterized by macroeconomic and markets uncertainty, investor relations bolster the functioning of primary and secondary markets, mitigate the refinancing risk, and ultimately reduce costs. Therefore, Governments may greatly benefit from regular contacts with their main investors and a high degree of transparency in data dissemination and reporting.
In this vein, Credit Rating Agencies are among the most important vehicles for sovereign debt managers’ communication to the market, as they provide investors with professional, systematic and standardized analyses of the risks associated with debt securities, enhancing financial markets' transparency. The recent financial crises of the late 2000s and early 2010s emphasized the role of Rating Agencies as a potential source for undesired, pro-cyclical macroeconomic effects, which may stem from rating downgrades during economic and financial downturns. As a result, the role of rating agencies is debated at the international level in order to ensure their neutral operating in capital markets.