Which of the following is not an importance of the sovereign rating? A: To arrive at cost of lending to a country B: To set lower floor for the rating of the corporate and banks of the countries on international scale. C: For determining the risk levels for international investment portfolios

Question

Quizplus · Accepted Answer

The importance of sovereign ratings includes determining the cost of lending to a country and the risk levels for international investment portfolios. However, it does not set a lower floor for the rating of the corporate and banks of the countries on an international scale. Therefore, option B is not an importance of the sovereign rating.

Which of the Following Is Not an Importance of the Sovereign