The update introduces long-term and short-term credit ratings, both in local and foreign currency. Existing ratings are unaffected.
Scope Ratings AG (hereafter: Scope) today published its updated sub-sovereign rating methodology. The update introduces long-term and short-term credit ratings both in local and foreign currency and explains Scope’s approach to assigning local- and foreign-currency ratings as well as short-term ratings to sub-sovereigns in advanced economies.
“With this publication, Scope will be able to improve its service to investors and to differentiate, if justified, between sub-sovereign credit ratings in local and foreign currencies. It will also allow Scope to address risks related to the short-term obligations of sub-sovereign governments when assigning short-term ratings”, says Dr Ilona Dmitrieva, a director at Scope’s Public Finance department and author of the methodology.
The rest of the existing methodology is unchanged, and the changes introduced do not affect existing ratings. The updated methodology will supersede the previously published sub-sovereign rating methodology.
Download the updated methodology
© 2017 Scope SE & Co. KGaA and all its subsidiaries including Scope Ratings AG, Scope Analysis GmbH, Scope Investor Services GmbH (collectively, Scope). All rights reserved. The information and data supporting Scope’s ratings, rating reports, rating opinions and related research and credit opinions originate from sources Scope considers to be reliable and accurate. Scope cannot however independently verify the reliability and accuracy of the information and data. Scope’s ratings, rating reports, rating opinions, or related research and credit opinions are provided “as is” without any representation or warranty of any kind. In no circumstance shall Scope or its directors, officers, employees and other representatives be liable to any party for any direct, indirect, incidental or otherwise damages, expenses of any kind, or losses arising from any use of Scope’s ratings, rating reports, rating opinions, related research or credit opinions. Ratings and other related credit opinions issued by Scope are, and have to be viewed by any party, as opinions on relative credit risk and not as a statement of fact or recommendation to purchase, hold or sell securities. Past performance does not necessarily predict future results. Any report issued by Scope is not a prospectus or similar document related to a debt security or issuing entity. Scope issues credit ratings and related research and opinions with the understanding and expectation that parties using them will assess independently the suitability of each security for investment or transaction purposes. Scope’s credit ratings address relative credit risk, they do not address other risks such as market, liquidity, legal, or volatility. The information and data included herein is protected by copyright and other laws. To reproduce, transmit, transfer, disseminate, translate, resell, or store for subsequent use for any such purpose the information and data contained herein, contact Scope Ratings AG at Lennéstraße 5 D-10785 Berlin.