NEW YORK--(BUSINESS WIRE)--The current turmoil across several emerging markets reminds us of the importance of liquidity in evaluating sovereign credit risk, just as it has a prominent role in assessing the credit risk of all other asset classes. Kroll Bond Rating Agency’s (KBRA) approach to rating sovereigns explicitly emphasizes liquidity risks and recognizes the importance of access to liquidity in stabilizing an economy. Sovereigns have extraordinary sources of liquidity from official and bilateral creditors, and some through their diaspora communities. Recent developments in economies such as Argentina and Turkey provide examples of the role played by liquidity in influencing sovereign risk.
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Kroll Bond Rating Agency, Inc. is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, Kroll Bond Rating Agency, Inc. is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.