Credit rating is basically a valuation of the credit worth of the borrower that is dispensed to a business, a corporation or a government that seeks to borrow money. The assessment is carried out by a credit rating agency on the capability of the borrower to repay their debt and their chances of nonpayment.The credit rating agencies consider various factors while defining a country’s debt rating.
The political climate of the country contributes immensely to the country’s economy and stability. Countries that are ranked highly have a steady political environment making them the richest economies in the world, with high growth domestic product (GDP) per capita.
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Extreme high-risk credibility ranges between 350 while extremely low risk credibility ranges from 850. Notably, credit ratings based on the likelihood that the government will fully pay its bond obligations. Countries that are ranked highly have a steady political environment making them the richest economies in the world.