Assessment of Political and Economic Risk to the Countries by the Major Rating Agencies

The paper provides an assessment of the political and economic risk to the countries of the major rating agencies. The credit rating is analyzed as an independent assessment, a step in the process of making investment decisions and a result of in-depth analysis. Rating criteria, rating agency discrepancies, market impact, and credit rating role are discussed. Key findings are made on the activities of credit rating agencies and their role in the context of turning credit rating into a critical element of the financial system.