One problem with using country risk analysis (CRA) statistical credit scoring models to evaluate sovereign credit risk is the classification into only two possible outcomes.

Question

Quizplus · Accepted Answer

CRA statistical credit scoring models often only classify countries into two categories - either "investment grade" or "non-investment grade," which can oversimplify the risk assessment and fail to account for nuances in sovereign credit risk.

One Problem with Using Country Risk Analysis (CRA) Statistical Credit