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.
While welcoming the earlier Perspective (No. 85, December 17, 2012) on the ongoing US-China BIT negotiations, an alternative, business-oriented approach should be taken. It is more important to secure a high-standard agreement, with strong investor protections and dispute settlement provisions, than to seek a quick agreement by splitting the difference on key issues. The 2012 US Model BIT provides a good template for a final agreement.
A translation in Mandarin is also available via the “Download Resources” button.
