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Sovereign Risk Ceilings: Rethinking Credit Assessment Through Risk Disaggregation
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Sovereign Risk Ceilings: Rethinking Credit Assessment Through Risk Disaggregation

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.

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Rabah Arezki is a Senior Fellow at Harvard University’s John F. Kennedy School of Government and Director of Research at the French National Centre for Scientific Research (CNRS). Prior to that, he was Chief Economist and Vice President, Economic Governance and Knowledge Management at the African Development Bank. Previously, he was Chief Economist for the Middle East and North Africa Region at the World Bank, Chief of the Commodities and Environment Unit in the Research Department at the International Monetary Fund, and a non-resident fellow at the Brookings Institution.

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