The number of sovereign rating actions that Standard & Poor’s RatingsServices has taken over the past several months has led to heightenedinterest in our approach to issuing ratings that are above the sovereign’s for government-related entities (GREs), banks, insurers,
corporations, state, regional, or local governments, and securitizations.
Investors have asked for clarification on our methodologies and examples of
how we put them into practice. So it seems appropriate to summarize the
criteria we’ve published on the topic and to answer the questions we receive
most frequently from market participants. We note that for entities
domiciled in countries which are members of the European Monetary Union
(EMU), readers should refer to the separate criteria article: “Nonsovereign
Ratings That Exceed EMU Sovereign Ratings,” published June 14, 2011,
on RatingsDirect, on the Global Credit Portal.
Standard & Poor’s CreditWeek | August 17, 2011 22
Understanding Ratings Above The Sovereign