Subnational Credit Ratings : A Comparative Review
This paper surveys methodological issues in subnational credit ratings and highlights key challenges for developing countries. Subnational borrowing from capital markets has been on the rise owing to fiscal decentralization and demand for infrastru...
| Main Authors: | , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
|
| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090805152909 http://hdl.handle.net/10986/4206 |
| id |
okr-10986-4206 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
ACCESS TO CAPITAL ACCOUNTING ACCOUNTING STANDARDS ARREARS BAILOUTS BALANCE DUE BALANCE SHEET BANK FINANCING BANK LENDING BANK LOANS BASIS POINTS BENEFICIARIES BID BOND BOND INDEX BOND PRICES BOND SPREADS BOND YIELD BOND YIELDS BONDS BORROWER BORROWING CAPACITY BORROWING COST BORROWING COSTS BUDGET DEFICIT BUDGET DEFICITS BUDGET SURPLUSES BUDGETING BUSINESS CYCLES CAPITAL FLOWS CAPITAL INFLOWS CAPITAL INVESTMENT CAPITAL INVESTMENTS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKET FINANCING CAPITAL MARKETS CAPITAL OUTFLOWS CASH BALANCE CASH FLOW CASH INFLOWS COLLATERALS COMMERCIAL BANKS CONTINGENT LIABILITIES CORPORATE BONDS CORPORATE DEBT CORPORATE DEFAULT CORPORATE GOVERNANCE COUNTRY CREDIT COUPONS CREDIBILITY CREDIT ASSESSMENT CREDIT MARKETS CREDIT QUALITY CREDIT RATING CREDIT RATING AGENCIES CREDIT RATING AGENCY CREDIT RATINGS CREDIT RISKS CREDIT SPREADS CREDIT STANDING CREDIT STRENGTH CREDIT STRENGTHS CREDITORS CREDITWORTHINESS CURRENCY CRISES CURRENCY DEVALUATION CURRENCY RISKS DEBT DEBT BURDEN DEBT CRISIS DEBT FINANCING DEBT INSTRUMENT DEBT INSTRUMENTS DEBT ISSUANCE DEBT ISSUER DEBT ISSUERS DEBT ISSUES DEBT MANAGEMENT DEBT MARKET DEBT OBLIGATIONS DEBT RATIOS DEBT REDUCTION DEBT SERVICE DEBT SERVICING DEBT STOCK DEBT STOCK OUTSTANDING DEBT-SERVICE DEBTS DEFAULT PROBABILITIES DEFAULT RATES DEFAULT RISK DEFAULT RISKS DEFAULTS DERIVATIVE INSTRUMENTS DEVELOPING COUNTRIES DOLLAR BOND DOMESTIC CURRENCY DOMESTIC DEBT DOMESTIC MARKET ECONOMIC DEVELOPMENT EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET BOND EMERGING MARKET ECONOMIES EMERGING MARKETS ENFORCEABILITY ENFORCEABLE CONTRACTS EXCHANGE CONTROLS EXPENDITURE EXPENDITURES FINANCES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL HEALTH FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL PERFORMANCE FINANCIAL RISKS FINANCIAL SUPPORT FINANCIAL SYSTEM FISCAL CAPACITY FISCAL DECENTRALIZATION FISCAL DISCIPLINE FISCAL POLICIES FISCAL POLICY FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN CURRENCY RISK FOREIGN DEBTS FOREIGN MARKETS GLOBAL ECONOMY GOVERNANCE STANDARDS IMPLICIT GUARANTEES INCOME GROWTH INCOME TAXES INFLATION INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INSTITUTIONAL INVESTORS INTEREST PAYMENTS INTEREST RATE INTEREST RATE RISK INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKET INTERNATIONAL CAPITAL MARKETS INTERNATIONAL RATING AGENCIES INVESTMENT BANKS INVESTMENT POLICIES LEGAL CONSTRAINTS LEGAL FRAMEWORK LENDERS LIQUIDITY LIQUIDITY MANAGEMENT LIQUIDITY POSITION LIQUIDITY PROBLEMS LOCAL CURRENCY LOCAL ECONOMY LOCAL GOVERNMENT LOCAL GOVERNMENTS LONG-TERM DEBT MACROECONOMIC MANAGEMENT MARKET PARTICIPANTS MARKET PRICING MARKET RISKS MARKET VALUE MATURITIES MATURITY MATURITY STRUCTURE MORAL HAZARD MORTGAGE MORTGAGE-BACKED SECURITIES MUNICIPAL INVESTMENT PAYMENT OBLIGATIONS PENSION PENSIONS PORTFOLIO PRICE RISKS PROBABILITY OF DEFAULT PUBLIC FINANCE PUBLIC INVESTMENT PUBLIC SECTOR DEBT REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REPAYMENT REPAYMENT CAPACITY RESERVES RETURNS RISK ASSESSMENTS RISK MANAGEMENT RISK MANAGEMENT SYSTEM RISK OF DEFAULT SECONDARY MARKET SHORT-TERM DEBT SOFT BUDGET CONSTRAINT SOLVENCY SOVEREIGN BOND SOVEREIGN BONDS SOVEREIGN DEBT SOVEREIGN DEFAULT SOVEREIGN DEFAULTS SOVEREIGN ISSUERS SOVEREIGN RATING SOVEREIGN RATINGS SOVEREIGN RISK SOVEREIGN RISKS STAMP DUTIES SUBNATIONAL BOND MARKET TAX TAX SYSTEM TRADING TRANSFER RISK TRANSPARENCY TREASURIES USE OF DERIVATIVE VARIABLE INTEREST RATE YIELD SPREADS |
| spellingShingle |
ACCESS TO CAPITAL ACCOUNTING ACCOUNTING STANDARDS ARREARS BAILOUTS BALANCE DUE BALANCE SHEET BANK FINANCING BANK LENDING BANK LOANS BASIS POINTS BENEFICIARIES BID BOND BOND INDEX BOND PRICES BOND SPREADS BOND YIELD BOND YIELDS BONDS BORROWER BORROWING CAPACITY BORROWING COST BORROWING COSTS BUDGET DEFICIT BUDGET DEFICITS BUDGET SURPLUSES BUDGETING BUSINESS CYCLES CAPITAL FLOWS CAPITAL INFLOWS CAPITAL INVESTMENT CAPITAL INVESTMENTS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKET FINANCING CAPITAL MARKETS CAPITAL OUTFLOWS CASH BALANCE CASH FLOW CASH INFLOWS COLLATERALS COMMERCIAL BANKS CONTINGENT LIABILITIES CORPORATE BONDS CORPORATE DEBT CORPORATE DEFAULT CORPORATE GOVERNANCE COUNTRY CREDIT COUPONS CREDIBILITY CREDIT ASSESSMENT CREDIT MARKETS CREDIT QUALITY CREDIT RATING CREDIT RATING AGENCIES CREDIT RATING AGENCY CREDIT RATINGS CREDIT RISKS CREDIT SPREADS CREDIT STANDING CREDIT STRENGTH CREDIT STRENGTHS CREDITORS CREDITWORTHINESS CURRENCY CRISES CURRENCY DEVALUATION CURRENCY RISKS DEBT DEBT BURDEN DEBT CRISIS DEBT FINANCING DEBT INSTRUMENT DEBT INSTRUMENTS DEBT ISSUANCE DEBT ISSUER DEBT ISSUERS DEBT ISSUES DEBT MANAGEMENT DEBT MARKET DEBT OBLIGATIONS DEBT RATIOS DEBT REDUCTION DEBT SERVICE DEBT SERVICING DEBT STOCK DEBT STOCK OUTSTANDING DEBT-SERVICE DEBTS DEFAULT PROBABILITIES DEFAULT RATES DEFAULT RISK DEFAULT RISKS DEFAULTS DERIVATIVE INSTRUMENTS DEVELOPING COUNTRIES DOLLAR BOND DOMESTIC CURRENCY DOMESTIC DEBT DOMESTIC MARKET ECONOMIC DEVELOPMENT EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET BOND EMERGING MARKET ECONOMIES EMERGING MARKETS ENFORCEABILITY ENFORCEABLE CONTRACTS EXCHANGE CONTROLS EXPENDITURE EXPENDITURES FINANCES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL HEALTH FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL PERFORMANCE FINANCIAL RISKS FINANCIAL SUPPORT FINANCIAL SYSTEM FISCAL CAPACITY FISCAL DECENTRALIZATION FISCAL DISCIPLINE FISCAL POLICIES FISCAL POLICY FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN CURRENCY RISK FOREIGN DEBTS FOREIGN MARKETS GLOBAL ECONOMY GOVERNANCE STANDARDS IMPLICIT GUARANTEES INCOME GROWTH INCOME TAXES INFLATION INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INSTITUTIONAL INVESTORS INTEREST PAYMENTS INTEREST RATE INTEREST RATE RISK INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKET INTERNATIONAL CAPITAL MARKETS INTERNATIONAL RATING AGENCIES INVESTMENT BANKS INVESTMENT POLICIES LEGAL CONSTRAINTS LEGAL FRAMEWORK LENDERS LIQUIDITY LIQUIDITY MANAGEMENT LIQUIDITY POSITION LIQUIDITY PROBLEMS LOCAL CURRENCY LOCAL ECONOMY LOCAL GOVERNMENT LOCAL GOVERNMENTS LONG-TERM DEBT MACROECONOMIC MANAGEMENT MARKET PARTICIPANTS MARKET PRICING MARKET RISKS MARKET VALUE MATURITIES MATURITY MATURITY STRUCTURE MORAL HAZARD MORTGAGE MORTGAGE-BACKED SECURITIES MUNICIPAL INVESTMENT PAYMENT OBLIGATIONS PENSION PENSIONS PORTFOLIO PRICE RISKS PROBABILITY OF DEFAULT PUBLIC FINANCE PUBLIC INVESTMENT PUBLIC SECTOR DEBT REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REPAYMENT REPAYMENT CAPACITY RESERVES RETURNS RISK ASSESSMENTS RISK MANAGEMENT RISK MANAGEMENT SYSTEM RISK OF DEFAULT SECONDARY MARKET SHORT-TERM DEBT SOFT BUDGET CONSTRAINT SOLVENCY SOVEREIGN BOND SOVEREIGN BONDS SOVEREIGN DEBT SOVEREIGN DEFAULT SOVEREIGN DEFAULTS SOVEREIGN ISSUERS SOVEREIGN RATING SOVEREIGN RATINGS SOVEREIGN RISK SOVEREIGN RISKS STAMP DUTIES SUBNATIONAL BOND MARKET TAX TAX SYSTEM TRADING TRANSFER RISK TRANSPARENCY TREASURIES USE OF DERIVATIVE VARIABLE INTEREST RATE YIELD SPREADS Liu, Lili Tan, Kim Song Subnational Credit Ratings : A Comparative Review |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5013 |
| description |
This paper surveys methodological issues
in subnational credit ratings and highlights key challenges
for developing countries. Subnational borrowing from capital
markets has been on the rise owing to fiscal
decentralization and demand for infrastructure investments.
A prerequisite for accessing capital markets, subnational
credit ratings have also emerged as a part of broader reform
for fiscal sustainability. They facilitate a more
transparent budgetary and financial management system. The
global financial crisis makes subnational credit ratings
more relevant, as they contribute to fiscal risk evaluations
and fiscal adjustment. In addition to subnationals own
credit strength, the creditworthiness of the sovereign and
the intergovernmental fiscal system are among the most
critical rating criteria. Implicit and contingent
liabilities are integral to the rating process. Indirect
debt instruments including off-balance-sheet financing
create fiscal risks. The ongoing financial crisis has
reinforced the rating focus on the management of liquidity,
debt structure, and off-balance-sheet liabilities. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Liu, Lili Tan, Kim Song |
| author_facet |
Liu, Lili Tan, Kim Song |
| author_sort |
Liu, Lili |
| title |
Subnational Credit Ratings : A Comparative Review |
| title_short |
Subnational Credit Ratings : A Comparative Review |
| title_full |
Subnational Credit Ratings : A Comparative Review |
| title_fullStr |
Subnational Credit Ratings : A Comparative Review |
| title_full_unstemmed |
Subnational Credit Ratings : A Comparative Review |
| title_sort |
subnational credit ratings : a comparative review |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090805152909 http://hdl.handle.net/10986/4206 |
| _version_ |
1764390405371068416 |
| spelling |
okr-10986-42062021-04-23T14:02:16Z Subnational Credit Ratings : A Comparative Review Liu, Lili Tan, Kim Song ACCESS TO CAPITAL ACCOUNTING ACCOUNTING STANDARDS ARREARS BAILOUTS BALANCE DUE BALANCE SHEET BANK FINANCING BANK LENDING BANK LOANS BASIS POINTS BENEFICIARIES BID BOND BOND INDEX BOND PRICES BOND SPREADS BOND YIELD BOND YIELDS BONDS BORROWER BORROWING CAPACITY BORROWING COST BORROWING COSTS BUDGET DEFICIT BUDGET DEFICITS BUDGET SURPLUSES BUDGETING BUSINESS CYCLES CAPITAL FLOWS CAPITAL INFLOWS CAPITAL INVESTMENT CAPITAL INVESTMENTS CAPITAL MARKET CAPITAL MARKET DEVELOPMENT CAPITAL MARKET FINANCING CAPITAL MARKETS CAPITAL OUTFLOWS CASH BALANCE CASH FLOW CASH INFLOWS COLLATERALS COMMERCIAL BANKS CONTINGENT LIABILITIES CORPORATE BONDS CORPORATE DEBT CORPORATE DEFAULT CORPORATE GOVERNANCE COUNTRY CREDIT COUPONS CREDIBILITY CREDIT ASSESSMENT CREDIT MARKETS CREDIT QUALITY CREDIT RATING CREDIT RATING AGENCIES CREDIT RATING AGENCY CREDIT RATINGS CREDIT RISKS CREDIT SPREADS CREDIT STANDING CREDIT STRENGTH CREDIT STRENGTHS CREDITORS CREDITWORTHINESS CURRENCY CRISES CURRENCY DEVALUATION CURRENCY RISKS DEBT DEBT BURDEN DEBT CRISIS DEBT FINANCING DEBT INSTRUMENT DEBT INSTRUMENTS DEBT ISSUANCE DEBT ISSUER DEBT ISSUERS DEBT ISSUES DEBT MANAGEMENT DEBT MARKET DEBT OBLIGATIONS DEBT RATIOS DEBT REDUCTION DEBT SERVICE DEBT SERVICING DEBT STOCK DEBT STOCK OUTSTANDING DEBT-SERVICE DEBTS DEFAULT PROBABILITIES DEFAULT RATES DEFAULT RISK DEFAULT RISKS DEFAULTS DERIVATIVE INSTRUMENTS DEVELOPING COUNTRIES DOLLAR BOND DOMESTIC CURRENCY DOMESTIC DEBT DOMESTIC MARKET ECONOMIC DEVELOPMENT EMERGING ECONOMIES EMERGING MARKET EMERGING MARKET BOND EMERGING MARKET ECONOMIES EMERGING MARKETS ENFORCEABILITY ENFORCEABLE CONTRACTS EXCHANGE CONTROLS EXPENDITURE EXPENDITURES FINANCES FINANCIAL CRISES FINANCIAL CRISIS FINANCIAL HEALTH FINANCIAL INFORMATION FINANCIAL INSTITUTIONS FINANCIAL INSTRUMENTS FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL PERFORMANCE FINANCIAL RISKS FINANCIAL SUPPORT FINANCIAL SYSTEM FISCAL CAPACITY FISCAL DECENTRALIZATION FISCAL DISCIPLINE FISCAL POLICIES FISCAL POLICY FOREIGN CAPITAL FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN CURRENCY RISK FOREIGN DEBTS FOREIGN MARKETS GLOBAL ECONOMY GOVERNANCE STANDARDS IMPLICIT GUARANTEES INCOME GROWTH INCOME TAXES INFLATION INFRASTRUCTURE FINANCING INFRASTRUCTURE INVESTMENT INFRASTRUCTURE INVESTMENTS INSTITUTIONAL INVESTORS INTEREST PAYMENTS INTEREST RATE INTEREST RATE RISK INTERNATIONAL BANK INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKET INTERNATIONAL CAPITAL MARKETS INTERNATIONAL RATING AGENCIES INVESTMENT BANKS INVESTMENT POLICIES LEGAL CONSTRAINTS LEGAL FRAMEWORK LENDERS LIQUIDITY LIQUIDITY MANAGEMENT LIQUIDITY POSITION LIQUIDITY PROBLEMS LOCAL CURRENCY LOCAL ECONOMY LOCAL GOVERNMENT LOCAL GOVERNMENTS LONG-TERM DEBT MACROECONOMIC MANAGEMENT MARKET PARTICIPANTS MARKET PRICING MARKET RISKS MARKET VALUE MATURITIES MATURITY MATURITY STRUCTURE MORAL HAZARD MORTGAGE MORTGAGE-BACKED SECURITIES MUNICIPAL INVESTMENT PAYMENT OBLIGATIONS PENSION PENSIONS PORTFOLIO PRICE RISKS PROBABILITY OF DEFAULT PUBLIC FINANCE PUBLIC INVESTMENT PUBLIC SECTOR DEBT REGULATORY FRAMEWORK REGULATORY FRAMEWORKS REPAYMENT REPAYMENT CAPACITY RESERVES RETURNS RISK ASSESSMENTS RISK MANAGEMENT RISK MANAGEMENT SYSTEM RISK OF DEFAULT SECONDARY MARKET SHORT-TERM DEBT SOFT BUDGET CONSTRAINT SOLVENCY SOVEREIGN BOND SOVEREIGN BONDS SOVEREIGN DEBT SOVEREIGN DEFAULT SOVEREIGN DEFAULTS SOVEREIGN ISSUERS SOVEREIGN RATING SOVEREIGN RATINGS SOVEREIGN RISK SOVEREIGN RISKS STAMP DUTIES SUBNATIONAL BOND MARKET TAX TAX SYSTEM TRADING TRANSFER RISK TRANSPARENCY TREASURIES USE OF DERIVATIVE VARIABLE INTEREST RATE YIELD SPREADS This paper surveys methodological issues in subnational credit ratings and highlights key challenges for developing countries. Subnational borrowing from capital markets has been on the rise owing to fiscal decentralization and demand for infrastructure investments. A prerequisite for accessing capital markets, subnational credit ratings have also emerged as a part of broader reform for fiscal sustainability. They facilitate a more transparent budgetary and financial management system. The global financial crisis makes subnational credit ratings more relevant, as they contribute to fiscal risk evaluations and fiscal adjustment. In addition to subnationals own credit strength, the creditworthiness of the sovereign and the intergovernmental fiscal system are among the most critical rating criteria. Implicit and contingent liabilities are integral to the rating process. Indirect debt instruments including off-balance-sheet financing create fiscal risks. The ongoing financial crisis has reinforced the rating focus on the management of liquidity, debt structure, and off-balance-sheet liabilities. 2012-03-19T19:11:48Z 2012-03-19T19:11:48Z 2009-08-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090805152909 http://hdl.handle.net/10986/4206 English Policy Research working paper ; no. WPS 5013 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |