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 reviews evidence from a survey of political risk insurance providers on the consideration of bilateral investment treaties when assessing the risk of investment projects. He finds that, while BITs are basically aimed at reducing the risk of investing abroad, many agencies that price the risk of foreign investments rarely take them into account.
A translation in Mandarin is also available via the “Download Resources” button.
