articles Ratings /ratings/en/research/articles/200507-corporate-and-government-ratings-that-exceed-the-sovereign-rating-7647208 content esgSubNav
In This List

Corporate And Government Ratings That Exceed The Sovereign Rating


Sustainability Insights: Climate Transition Risk: Historical Greenhouse Gas Emissions Trends For Global Industries


Instant Insights: Key Takeaways From Our Research


Argentina's Incoming Administration Faces Difficult Economic Policy Implementation


New Zealand Local Government Outlook 2024: Bridge Over Troubled Waters

Corporate And Government Ratings That Exceed The Sovereign Rating

This report does not constitute a rating action.

S&P Global Ratings has 94 foreign currency ratings on corporates (including financial institution) and local or regional government (LRG) that exceed the foreign currency sovereign credit rating on the country of domicile. Table 1 lists these entities, which are domiciled in 22 different countries. This list does not include state and municipal obligors in the U.S. with ratings above the sovereign.

The list has grown since we expanded our criteria for assessing the risk of the sovereign restricting access to foreign exchange needed for debt service. For more information about the methodology for determining transfer and convertibility (T&C) assessments, please see "Criteria For Determining Transfer And Convertibility Assessments," published May 18, 2009. We publish "Sovereign Ratings History," a record of T&C assessments for all countries with sovereign credit ratings, on a monthly basis (the article was previously titled "Sovereign Rating And Country T&C Assessment Histories").

Meanwhile, we have 73 local currency financial strength ratings on insurance entities that exceed the foreign currency rating on the sovereign (in 21 different countries of domicile). These entities are listed in table 2. An S&P Global Ratings local currency financial strength rating above the sovereign credit rating indicates that there is an appreciable likelihood that the insurer would not default on its insurance policy obligations on a local currency basis in the stress scenario likely to accompany a sovereign default.

A T&C assessment is associated with the likelihood of a sovereign restricting nonsovereign access to foreign exchange needed for debt service. While history shows that many nonsovereign entities default around the time of a sovereign default, in recent years, this rarely has been the result of the inability of resident entities to convert local currency to foreign currency and to then transfer it to nonresidents to meet debt obligations. Instead, the nonsovereign defaults have more often been the result of currency depreciation, economic contraction, liquidity constraints stemming from credit shortages, restrictions on raising utility rates and other price controls, hikes in taxes and government fees amid cutbacks in services, and delayed or partial government payments. The operating and financial characteristics of the entities listed in the tables have been tested against severe downside scenarios. The higher ratings on these entities indicate that S&P Global Ratings believes there is a measurable likelihood that these entities can meet debt obligations even when the sovereign cannot.

In most cases, the nonsovereign foreign currency credit ratings do not exceed the T&C assessment. When exceptions occur, it is S&P Global Ratings' opinion that these entities are well insulated from T&C restrictions and from the other downside scenarios outlined above.

If a sovereign, through membership in a monetary or currency union, has ceded monetary and exchange rate policy responsibility to a monetary authority that the sovereign does not solely control, the T&C assessment reflects the policies of the controlling monetary authority, vis-à-vis the exchange of its currency for other currencies in the context of debt service. The same applies if a sovereign uses as its local currency the currency of another sovereign. A T&C assessment may change sharply if a sovereign introduces a new local currency, by entering or exiting a monetary or currency union or through some other means. This is because the new local currency, and in some cases the new monetary authority, may operate in very different monetary and exchange regimes. The T&C assessment does not normally reflect the likelihood of change in a country's local currency.

Table 1

Corporate And Government Ratings That Exceed The Sovereign Rating As Of Oct. 31, 2023
Sovereign Issuer T&C assessment FC rating


BB- B+/Stable/B
Intercorp Peru Ltd. BBB-/Stable/--


BB- B+/Positive/B
Ahli United Bank B.S.C. BBB/Positive/A-2
Arab Banking Corp. B.S.C. BBB-/Stable/A-3


BB+ BB-/Positive/B
Adecoagro S.A. BB/Stable/--
Ambev S.A. BBB/Positive/--
Braskem S.A. BBB-/Negative/--
Companhia Siderurgica Nacional (CSN) BB/Stable/--
Embraer S.A. BB+/Stable/--
Gerdau S.A. BBB-/Positive/--
Globo Comunicacao e Participacoes S.A. (GLOBO) BB+/Stable/--
Hypera S.A. BB+/Stable/--
Jalles Machado S.A. BB/Stable/--
JBS S.A. BBB-/Negative/--
Klabin S.A. BB+/Stable/--
Localiza Rent a Car S.A. BB+/Positive/--
Marfrig Global Foods S.A. BB+/Stable/--
Minerva S.A. BB/Stable/--
Natura & Co Holding S.A. BB/Stable/--
Natura Cosmeticos S.A. BB/Stable/--
Raizen S.A. BBB-/Positive/--
Rede D'Or Sao Luiz S.A. BB/Stable/--
Sao Martinho S.A. BBB-/Stable/--
Suzano S.A. BBB-/Stable/--
Tupy S.A. BB+/Stable/--
Ultrapar Participacoes S.A. BB+/Positive/--
Usinas Siderurgicas de Minas Gerais S.A. (Usiminas) BB/Stable/--
Vale S.A. BBB-/Stable/--
Votorantim Cimentos S.A. BBB-/Positive/--
Votorantim S.A. BBB-/Positive/--


BBB BB+/Stable/B
Enel Colombia S.A E.S.P. BBB-/Stable/--


BBB- BBB-/Stable/A-3
First Abu Dhabi Bank USA N.V. AA-/Stable/A-1+
Schlumberger Ltd. A/Stable/A-1

El Salvador

AAA* CCC+/Stable/C
Banco Agricola S.A B-/Negative/B


AAA* BBB-/Stable/A-3
Hellenic Telecommunications Organization S.A. BBB+/Stable/A-2


BBB+ BBB-/Stable/A-3
HCL Technologies Limited A-/Stable/--
Infosys Ltd. A/Stable/--
Reliance Industries Ltd. BBB+/Stable/--
Wipro Ltd. A-/Stable/--


BBB+ BBB/Stable/A-2
PT Astra International Tbk BBB+/Stable/--


AAA* BBB/Stable/A-2
Banca Nazionale del Lavoro SpA BBB+/Stable/A-2
Bank of New York Mellon S.A./N.V. (Italian Branch) A+/Stable/A-1
Barclays Bank Ireland PLC (Milan Branch) A+/Stable/A-1
BNP Paribas SA (Milan Branch) A+/Stable/A-1
Deutsche Bank AG (Milan Branch) A-/Positive/A-2
Enel SpA BBB+/Negative/A-2
Eni SpA A-/Stable/A-2
Hera SpA BBB+/Stable/A-2
SNAM SpA BBB+/Stable/A-2
Societa Metropolitana Acque Torino SpA BBB+/Stable/--
Terna SpA BBB+/Stable/A-2


AA+ A+/Stable/A-1
FUJIFILM Holdings Corp. AA-/Stable/A-1+
Osaka Gas Co. Ltd. AA-/Negative/A-1+
Tokyo Gas Co. Ltd. AA-/Stable/A-1+


BB B+/Stable/B
Hikma Pharmaceuticals PLC BBB-/Stable/--


AAA* A-/Stable/A-2
Munich Re of Malta PLC AA-/Positive/--


A BBB/Stable/A-2
America Movil S.A.B. de C.V. A-/Stable/--
Asigna, Compensacion y Liquidacion BBB+/Stable/A-2
Banco Actinver, S.A., Institucion de Banca Multiple, Grupo Financiero Actinver, Division Fiduciaria, Fideicomiso 1721 BBB+/Stable/A-2
Coca-Cola Femsa, S.A.B. de C.V. A-/Stable/--
Fomento Economico Mexicano, S. A. B. de C. V. BBB+/Stable/--
Grupo Bimbo, S.A.B. de C.V. BBB+/Stable/--
Grupo Mexico, S.A.B. de C.V. BBB+/Stable/--
Grupo Televisa, S. A. B. BBB+/Stable/--
Kansas City Southern de Mexico S.A. de C.V. BBB+/Stable/A-2
Kimberly-Clark de Mexico S.A.B. de C.V. A-/Stable/--
Minera Mexico, S.A. de C.V. BBB+/Stable/--
Siemens Servicios Comerciales S.A. de C.V. Sofom E.N.R. A-/Stable/--
Telefonos de Mexico, S.A.B. de C.V. A-/Stable/--


B- B-/Stable/B
Seplat Energy PLC B/Stable/--


AAA* BBB/Stable/A-2
Autoridad del Canal de Panama A-/Stable/--

South Africa

BB+ BB-/Stable/B
AngloGold Ashanti Ltd. BB+/Stable/--
Gold Fields Ltd. BBB-/Stable/A-3
Sappi Ltd. BB/Positive/B
Sasol Ltd. BB+/Stable/B
Sibanye Stillwater Ltd. BB/Stable/--
Telkom SA SOC Ltd. BB/Stable/--


AAA* A/Stable/A-1
Autonomous Community of Navarre AA-/Stable/--
Autonomous Community of the Basque Country AA-/Stable/--
Banco Santander S.A. A+/Stable/A-1
Barclays Bank Ireland PLC, Sucursal en Espana (Madrid Branch) A+/Stable/A-1
Credit Suisse Bank (Europe) S.A. A+/Stable/A-1
Historical Territory of Bizkaia AA-/Stable/A-1+


B B/Stable/B
Anadolu Efes Biracilik ve Malt Sanayii AS BB+/Negative/--
Arcelik A.S. BB/Negative/--
Coca-Cola Icecek AS BB+/Negative/--
Koc Holding A.S. B+/Stable/B
Pegasus Hava Tasimaciligi A.S. B+/Stable/--


CCC+ CCC/Negative/C
Bank Alliance JSC CCC+/Stable/C
City of Kyiv CCC+/Stable/--
PrJSC VF Ukraine CCC+/Stable/--
Ukrainian Railways JSC CCC+/Negative/--

United Kingdom

AAA AA/Stable/A-1+
Wellcome Trust AAA/Stable/--

United States of America

AAA AA+/Stable/A-1+
Johnson & Johnson AAA/Negative/A-1+
Microsoft Corp. AAA/Stable/A-1+
*These T&C assessments are for countries that are either members of monetary or currency unions or use as their local currency the currency of another sovereign. Because of this, the assessment shown is based on Standard & Poor's analysis of either the monetary authority of the monetary/currency union or the sovereign issuing the currency. Thus, for European Economic and Monetary Union (EMU) members (such as Greece, Ireland, Italy, and/or Spain), the T&C assessments reflect our view of the likelihood of the European Central Bank restricting nonsovereign access to foreign exchange needed for debt service. As for countries that use the currency of another, the T&C assessment of Panama is equalized with that of the U.S.

Table 2

Insurance Ratings That Exceed The Sovereign Rating As Of Oct. 31, 2023
Sovereign Issuer T&C assessment Sovereign FC rating Sovereign LC rating LC-Financial Strength Rating


BB- B+/Positive/B B+/Positive/B
Hannover ReTakaful B.S.C. A+/Stable/-


B- B-/Positive/B B-/Positive/B
RGA Americas Reinsurance Co. Ltd. AA-/Stable/-
RGA Atlantic Reinsurance Co. Ltd. AA-/Stable/-
RGA Reinsurance Co. (Barbados) Ltd. AA-/Stable/-


AA+ A+/Stable/A-1 A+/Stable/A-1
ACE INA Overseas Insurance Co. Ltd. AA-/Stable/-
AIA International Ltd. AA-/Stable/-
AIA Reinsurance Ltd. AA-/Stable/-
Allianz Risk Transfer (Bermuda) Ltd. AA-/Stable/-
Assured Guaranty Re Ltd. AA/Stable/-
Assured Guaranty Re Overseas Ltd. AA/Stable/-
AXA China Region Insurance Co. (Bermuda) Ltd. AA-/Stable/-
AXA XL Reinsurance Ltd. AA-/Stable/-
Centre Reinsurance (U.S.) Ltd. AA/Stable/-
Chubb Bermuda Insurance Ltd. AA/Stable/-
Chubb INA Overseas Insurance Co. Ltd. AA-/Stable/-
Chubb Tempest Life Reinsurance Ltd. AA/Stable/-
Chubb Tempest Reinsurance Ltd. AA/Stable/-
Corporate Officers and Directors Assurance Ltd. AA/Stable/-
Hannover Life Reassurance Co. of America (Bermuda) Ltd. AA-/Stable/-
Hannover Re (Bermuda) Ltd. AA-/Stable/-
HSBC Life (International) Ltd. AA-/Stable/-
Legal & General Reinsurance Co. Ltd. AA-/Stable/-
Manulife (International) Ltd. AA-/Stable/-
Munich Re of Bermuda, Ltd. AA-/Positive/-
Pacific Life Re International Ltd. AA-/Stable/-
RGA Global Reinsurance Co. Ltd. AA-/Stable/-
RGA Worldwide Reinsurance Co Ltd. AA-/Stable/-
Top Layer Reinsurance Ltd. AA/Stable/-
XL Bermuda Ltd. AA-/Stable/-


BB+ BB-/Positive/B BB-/Positive/B
SCOR Brasil Resseguros SA A+/Stable/-


A+ A+/Stable/A-1 A+/Stable/A-1
Chubb Insurance Co. Ltd. (China) AA-/Stable/-


BBB BB+/Stable/B BBB-/Stable/A-3
Cardif Colombia Seguros Generales S.A. BBB-/Stable/-


AAA* BBB/Positive/A-2 BBB/Positive/A-2
Steamship Mutual Underwriting Association (Europe) Ltd. A/Stable/-


B- B-/Stable/B B-/Stable/B
Orient Takaful Insurance Company S.A.E A+/Stable/-


AAA* AA/Stable/A-1+ AA/Stable/A-1+
Berkshire Hathaway European Insurance DAC AA+/Stable/-


AAA* BBB/Stable/A-2 BBB/Stable/A-2
Allianz SpA A/Stable/-
Genertel SpA A/Stable/-
REVO Insurance SpA BBB+/Positive/-


AA+ A+/Stable/A-1 A+/Stable/A-1
Allianz Fire and Marine Insurance Japan Ltd. AA/Stable/-
Chubb Insurance Japan AA-/Stable/-
MetLife Insurance KK AA-/Stable/-


BBB BBB-/Stable/A-3 BBB-/Stable/A-3
Eurasia Insurance Co. BBB/Stable/-


A+ A-/Stable/A-2 A/Stable/A-1
Hannover Retakaful Labuan Branch Family A+/Stable/-
Hannover Retakaful Labuan Branch General A+/Stable/-
IAG Re Labuan (L) Bhd. AA-/Stable/-


AAA* A-/Stable/A-2 A-/Stable/A-2
Munich Re of Malta PLC AA-/Positive/-


A BBB/Stable/A-2 BBB+/Stable/A-2
AIG Seguros Mexico S.A. de C.V. A-/Stable/-
AXA Seguros S.A. de C.V. A-/Stable/-
ChubbSeguros Mexico S.A. BBB+/Stable/-
Sompo Seguros Mexico S.A. de C.V. A-/Stable/-
Tokio Marine Compania de Seguros S.A. de C.V. A+/Stable/-


B- B-/Stable/B B-/Stable/B
African Reinsurance Corp. A-/Stable/-


A+ A-/Stable/A-2 A/Stable/A-1
Towarzystwo Ubezpieczen i Reasekuracji WARTA S.A. A+/Stable/-

South Africa

BB+ BB-/Stable/B BB/Stable/B
African Reinsurance Corp. (South Africa) Ltd. A-/Stable/-
AIG Life South Africa Ltd. BB/Stable/-
AIG South Africa Ltd. BB/Stable/-
Allianz Global Corporate and Specialty South Africa Ltd. BB+/Stable/-
General Reinsurance Africa Ltd. AA+/Stable/-
GIC Re South Africa Ltd. BB+/Stable/-
Hannover Re South Africa Ltd. AA-/Stable/-
Hannover Reinsurance Africa Ltd. AA-/Stable/-
Munich Reinsurance Co. of Africa Ltd. AA-/Positive/-
Old Mutual Life Assurance Co. (South Africa) Ltd. BB/Stable/-
Santam Ltd. BB/Stable/-
SCOR Africa Ltd. A+/Stable/-
Swiss Re Africa Ltd. AA-/Stable/-


AAA* A/Stable/A-1 A/Stable/A-1
Mapfre Re, Compania de Reaseguros, S.A. A+/Stable/-


A BBB+/Stable/A-2 A-/Stable/A-2
Bangkok Insurance Public Co. Ltd. A-/Stable/-
New Hampshire Insurance Co. Thailand A+/Stable/-
Sompo Insurance (Thailand) PLC A/Stable/-
Tokio Marine Safety Insurance (Thailand) Public Co. Ltd. A/Stable/-

United Kingdom

AAA AA/Stable/A-1+ AA/Stable/A-1+
Berkshire Hathaway International Insurance Ltd. AA+/Stable/-
TransRe London Ltd. AA+/Stable/-
*These T&C assessments are for countries that are either members of monetary or currency unions or use as their local currency the currency of another sovereign. Because of this, the assessment shown is based on Standard & Poor's analysis of either the monetary authority of the monetary/currency union or the sovereign issuing the currency. Thus, for European Economic and Monetary Union (EMU) members (such as Greece, Ireland, Italy, and/or Spain), the T&C assessments reflect our view of the likelihood of the European Central Bank restricting nonsovereign access to foreign exchange needed for debt service. As for countries that use the currency of another, the T&C assessment of Panama is equalized with that of the U.S.

Related Criteria

Related Research

Primary Credit Analyst:Santiago Cajal, Mexico City + 52 55 5081 4521;
Secondary Contacts:Timucin Engin, Dubai (971) 4-372-7152;
Mirko Sanna, Milan (39) 02-72111-275;
Alexandra Filatova, Frankfurt +49 1735633709;
Tatiana Grineva, London + 44 20 7176 7061;

No content (including ratings, credit-related analyses and data, valuations, model, software, or other application or output therefrom) or any part thereof (Content) may be modified, reverse engineered, reproduced, or distributed in any form by any means, or stored in a database or retrieval system, without the prior written permission of Standard & Poor’s Financial Services LLC or its affiliates (collectively, S&P). The Content shall not be used for any unlawful or unauthorized purposes. S&P and any third-party providers, as well as their directors, officers, shareholders, employees, or agents (collectively S&P Parties) do not guarantee the accuracy, completeness, timeliness, or availability of the Content. S&P Parties are not responsible for any errors or omissions (negligent or otherwise), regardless of the cause, for the results obtained from the use of the Content, or for the security or maintenance of any data input by the user. The Content is provided on an “as is” basis. S&P PARTIES DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE CONTENT’S FUNCTIONING WILL BE UNINTERRUPTED, OR THAT THE CONTENT WILL OPERATE WITH ANY SOFTWARE OR HARDWARE CONFIGURATION. In no event shall S&P Parties be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses (including, without limitation, lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Content even if advised of the possibility of such damages.

Credit-related and other analyses, including ratings, and statements in the Content are statements of opinion as of the date they are expressed and not statements of fact. S&P’s opinions, analyses, and rating acknowledgment decisions (described below) are not recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security. S&P assumes no obligation to update the Content following publication in any form or format. The Content should not be relied on and is not a substitute for the skill, judgment, and experience of the user, its management, employees, advisors, and/or clients when making investment and other business decisions. S&P does not act as a fiduciary or an investment advisor except where registered as such. While S&P has obtained information from sources it believes to be reliable, S&P does not perform an audit and undertakes no duty of due diligence or independent verification of any information it receives. Rating-related publications may be published for a variety of reasons that are not necessarily dependent on action by rating committees, including, but not limited to, the publication of a periodic update on a credit rating and related analyses.

To the extent that regulatory authorities allow a rating agency to acknowledge in one jurisdiction a rating issued in another jurisdiction for certain regulatory purposes, S&P reserves the right to assign, withdraw, or suspend such acknowledgement at any time and in its sole discretion. S&P Parties disclaim any duty whatsoever arising out of the assignment, withdrawal, or suspension of an acknowledgment as well as any liability for any damage alleged to have been suffered on account thereof.

S&P keeps certain activities of its business units separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain business units of S&P may have information that is not available to other S&P business units. S&P has established policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process.

S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, (free of charge), and (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. Additional information about our ratings fees is available at

Register with S&P Global Ratings

Register now to access exclusive content, events, tools, and more.

Go Back