This blog was originally published on Illuminem, and has been co-authored with Rhian-Mari Thomas. She is the CEO...
Financing Climate & Sustainable Development / Report
Diagnosing how the sovereign ceiling functions as a simplifying shortcut that can obscure meaningful differences across borrowers, and proposing an alternative credit rating approach based on disaggregating sovereign risk into specific transmission channels.
The author argues that the reasonableness of investors’ expectations should be based in part on socio-economic conditions in the host country at the time of the investment. While political risk analysis cannot guarantee specific outcomes, it can provide investors and tribunals with an analytical framework to establish the expectations of a reasonable investor.
A translation in Mandarin is also available via the “Download Resources” button.
