With regard to the rating of sovereign bonds, political risk:

Question

Quizplus · Accepted Answer

Political risk in the context of sovereign bonds primarily involves the willingness of a government to meet its obligations (choice B) and is assessed through qualitative analysis of economic and political factors influencing government policies (choice C). The ability of a government to satisfy its obligations is more related to economic capacity rather than political risk.

With Regard to the Rating of Sovereign Bonds, Political Risk