15-1 If the credit risk of a foreign borrower is good,then the sovereign country risk is irrelevant.

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Sovereign country risk refers to the risk of a government defaulting on its debts, and this risk can impact the creditworthiness of its borrowers. Even if a foreign borrower has good credit risk, the risk of the borrower's home country defaulting on its debts can still affect the borrower's ability to repay its loans. Therefore, sovereign country risk is not entirely irrelevant, even if the borrower has good credit risk.

15-1 If the Credit Risk of a Foreign Borrower Is