Neural Networks



Neural Networks

1. What are sovereign ratings? Why are sovereign ratings important?

Part A

Sovereign credit rating is basically used to evaluate the credibility in terms of credit ratings of the national entity i.e. governments. Moreover, it reflects the level of risk in particular country when investing, thus political risk is also included in the sovereign credit rating.

Part B

It is necessary to know whether the borrower will default on its obligations or not. Hence, the importance is very much clear that these ratings are beneficial in two basic aspects. First, because national governments are the largest issuers in the international capital markets, ...