Sovereign Credit Risk

November 28 - 29, 2018
EUR 1,400
Prague, NH Hotel Prague
Ron Slomovits

The seminar enables the participants to deepen their expertise about sovereign credit risk and thoroughly apply the rating agency’s methodologies and modus operandi.

The two-day-seminar discusses a broad variety of rating agencies’ criteria for sovereign obligors and supranational agencies. Through detailed case studies the participants analyse how Standard & Poor’s applies its own methodologies, and which questions remain unanswered in public rating reports. The seminar will also touch on other rating agencies’ methodologies in order to identify general trends on specific entities’ rating factors and qualitative adjustments. Further participants will comprehend to read between the lines in rating reports and be able to form their own opinions about credit risk of specific sovereigns of their interest.

Starting position:
International rating agencies assess sovereign credit risk according to their own methodologies and criteria. Consequently, even taking into account the same set of hard fact data, rating outcomes may vary significantly from one rating agency to another. The large number of rating factors, and the complex interrelationships between various entities’ ratings, taking into account different sectors such as Financial Institutions and Local Governments, make it very difficult to track rating decisions and almost impossible to predict them.

The two-day seminar deals with the individual rating factors and thus the basic sovereign rating criteria on one hand, on the other hand practical examples in the form of detailed case studies for rated sovereigns will lead participants to in-depth knowledge of the rating agencies’ world of credit risk. In addition, the seminar discusses a selection of current ratings, in order to compare them qualitatively and quantitatively. Furthermore, the seminar covers current events and will evaluate how they might impact on specific sovereigns’ credit risk.

Added value:
The aim of the seminar is giving participants a thorough analytical perception of sovereign credit risk and discussing how they interrelate with ratings of other sectors (e.g. banking system). The detailed work on the case studies allows participants to break down far-reaching events for sovereigns to a single credit rating and use the knowledge for each individual own purpose. By guiding the participants through the various sovereign rating methodologies, the seminar explains how rating agencies work in detail and how they derive their rating decisions. This facilitates the participants to anticipate rating changes and initiate appropriate measures on a timely basis.

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