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In This List

Corporate And Government Ratings That Exceed The Sovereign Rating

Corporate And Government Ratings That Exceed The Sovereign Rating

One hundred and thirty six corporate (including financial institution) and local or regional government (LRG) ratings exceed the rating on the sovereign in the country of domicile, on a foreign-currency basis. The table lists these entities, which are domiciled in 24 different countries. The list does not include state and municipal obligors in the U.S. with ratings above the sovereign. The list has grown since S&P Global Ratings expanded its 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," May 18, 2009. A history of T&C assessments for all countries with rated sovereigns is published monthly on RatingsDirect as "Sovereign Ratings History."

A T&C assessment is the rating 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 infrequently 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/partial government payments.

The operating and financial characteristics of the entities listed in the table have been tested against severe downside scenarios. Their higher ratings 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 non-sovereign foreign currency credit ratings do not exceed the T&C assessment. When exceptions occur, it is our 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/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.

Corporate And Government Ratings That Exceed The Sovereign Rating As Of April 30, 2020
Sovereign Issuer T&C assessment FC rating


B- SD/--/SD
Aeropuertos Argentina 2000 S.A. CC/Negative/--
AES Argentina Generacion S.A B-/Negative/--
Banco De Galicia Y Buenos Aires S.A.U. B-/Negative/--
Banco de la Provincia de Buenos Aires B-/Negative/--
Banco Hipotecario S.A. CCC/Negative/--
Banco Patagonia S.A. B-/Negative/B
CAPEX S.A. B-/Negative/--
City of Buenos Aires B-/Negative/--
CLISA-Compania Latinoamericana de Infraestructura & Servicios S.A. CCC/Negative/--
Compania de Transporte de Energia Electrica en Alta Tension TRANSENER S.A. CCC+/Negative/--
Compania General de Combustibles S.A. B-/Watch Neg/--
Empresa Distribuidora Y Comercializadora Norte S.A. CCC+/Negative/--
Entre Rios (Province of) CCC/Negative/--
IRSA Inversiones y Representaciones S.A. CCC+/Watch Neg/--
IRSA Propiedades Comerciales S.A. CCC+/Watch Neg/--
Jujuy (Province of) CCC+/Negative/--
La Rioja (Province of) CCC-/Negative/--
Pampa Energia S.A. B-/Negative/--
Petroquimica Comodoro Rivadavia S.A. B-/Watch Neg/--
Province of Buenos Aires CC/Negative/--
Province of Cordoba B-/Negative/--
Province of Mendoza CCC-/Negative/--
Province of Neuquen B-/Negative/--
Province of Rio Negro B-/Negative/--
Province of Salta B-/Negative/--
Telecom Argentina S.A. B-/Negative/--
Transportadora de Gas del Sur S.A. (TGS) B-/Negative/--
YPF Energia Electrica S.A. B-/Negative/--
YPF S.A B-/Negative/--


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


BB- B+/Stable/B
Ahli United Bank B.S.C. BBB/Watch Pos/A-2
Al Baraka Banking Group B.S.C. BB-/Stable/B
Arab Banking Corp. B.S.C. BBB-/Stable/A-3


BB+ BB-/Stable/B
Ache Laboratorios Farmaceuticos S.A. BB+/Stable/--
Adecoagro S.A. BB/Negative/--
Ambev S.A. BBB/Stable/--
Braskem S.A. BBB-/Negative/--
Embraer S.A. BBB-/Watch Neg/--
Gerdau S.A. BBB-/Negative/--
Globo Comunicacao e Participacoes S.A. (GLOBO) BB+/Stable/--
Hypera S.A. BB+/Stable/--
JBS S.A. BB/Stable/--
Klabin S.A. BB+/Stable/--
Localiza Rent a Car S.A. BB+/Watch Neg/--
Raizen Combustiveis S.A. BBB-/Stable/--
Raizen Energia S.A. BBB-/Stable/--
Sao Martinho S.A. BBB-/Stable/--
Suzano S.A. BBB-/Negative/--
Tupy S.A. BB/Watch Neg/--
Ultrapar Participacoes S.A. BB+/Stable/--
Vale S.A. BBB-/Negative/--
Votorantim Cimentos S.A. BBB-/Stable/--
Votorantim S.A. BBB-/Stable/--


BBB+ BBB-/Negative/A-3
Emgesa S.A. E.S.P. BBB/Negative/--


BBB BBB/Negative/A-2
First Abu Dhabi Bank USA N.V. AA-/Negative/A-1+
Schlumberger Ltd. A/Negative/A-1


AAA* BB-/Stable/B
Hellenic Telecommunications Organization S.A. BBB-/Stable/A-3
Titan Cement Co. S.A. BB/Stable/B


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


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


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


AA+ A+/Positive/A-1
Central Japan Railway Co. AA-/Watch Neg/--
Denso Corp. AA-/Watch Neg/A-1+
East Japan Railway Co. AA-/Watch Neg/--
FUJIFILM Holdings Corp. AA-/Stable/A-1+
Japan Tobacco Inc. AA-/Negative/A-1+
Nippon Telegraph and Telephone Corp. AA-/Stable/A-1+
NTT DOCOMO, INC. AA-/Stable/A-1+
NTT Finance Corporation AA-/Stable/A-1+
Osaka Gas Co. Ltd. AA-/Stable/A-1+
Seven & i Holdings Co., Ltd. AA-/Stable/--
Seven-Eleven Japan Co., Ltd. AA-/Stable/A-1+
Tokyo Gas Co. Ltd. AA-/Stable/A-1+
Toyota Finance Corp. AA-/Watch Neg/A-1+
Toyota Financial Services Corp. AA-/Watch Neg/A-1+
Toyota Industries Corp. AA-/Watch Neg/A-1+
Toyota Motor Corp. AA-/Watch Neg/A-1+


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


BBB BBB-/Stable/A-3
Tengizchevroil LLP BBB/Negative/--


AAA* A-/Stable/A-2
CommBank Europe Ltd. AA-/Negative/A-1+


A BBB/Negative/A-2
America Movil S.A.B. de C.V. BBB+/Negative/--
Asigna, Compensacion y Liquidacion BBB+/Negative/A-2
Coca-Cola Femsa, S.A.B. de C.V. BBB+/Negative/--
Fomento Economico Mexicano, S. A. B. de C. V. A-/Negative/--
Grupo Mexico, S.A.B. de C.V. BBB+/Stable/--
Grupo Televisa, S. A. B. BBB+/Negative/--
Kimberly-Clark de Mexico S.A.B. de C.V. BBB+/Negative/--
Minera Mexico, S.A. de C.V. BBB+/Stable/--
Telefonos de Mexico S.A. de C.V. BBB+/Negative/--


B- B-/Stable/B
Seplat Petroleum Development Company PLC B/Negative/--


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


BBB BBB-/Stable/A-3

South Africa

BB+ BB-/Stable/B
AngloGold Ashanti Ltd. BB+/Stable/--
Capitec Bank Ltd. BB/Negative/B
Development Bank of Southern Africa Ltd. BB/Negative/B
FirstRand Bank Ltd. BB/Negative/B
Gold Fields Ltd. BB+/Stable/B
Investec Bank Ltd. BB/Negative/B
Mobile Telephone Networks Holdings Ltd. BB/Negative/--
MTN Group Ltd. BB/Negative/--
Nedbank Ltd. BB/Negative/B
Rand Water BB/Negative/--
Sappi Ltd. BB/Negative/B
Sasol Ltd. BB/Negative/B
Telkom SA SOC Ltd. BB+/Negative/--
Transnet SOC Ltd. BB/Negative/--


AAA* A/Stable/A-1
Autonomous Community of Navarre AA-/Stable/--
Autonomous Community of the Basque Country AA-/Stable/--
BNP Paribas Securities Services (Madrid Branch) A+/Negative/A-1
Consorcio de Transportes de Bizkaia AA-/Stable/A-1+
Credit Suisse Securities Sociedad de Valores S.A. A+/Stable/A-1
Historical Territory of Bizkaia AA-/Stable/A-1+


AA+ AA-/Stable/A-1+
Chunghwa Telecom Co. Ltd. AA/Stable/--


BB- B+/Stable/B
Anadolu Efes Biracilik ve Malt Sanayii AS BBB-/Stable/--
Arcelik A.S. BB/Negative/--
Koc Holding A.S. BB-/Stable/B
Mersin Uluslararasi Liman Isletmeciligi A.S. BB-/Stable/--
Turk Telekom BB-/Stable/B
Turkcell Iletisim Hizmetleri A.S. BB-/Stable/--


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


AAA AA+/Stable/A-1+
Johnson & Johnson AAA/Stable/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 S&P Global Ratings' 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

  • Criteria For Determining Transfer And Convertibility Assessments, May 18, 2009

Related Research

  • Sovereign Ratings History

This report does not constitute a rating action.

Primary Credit Analyst:Santiago Cajal, Mexico City + 52 55 7918 0801;
Secondary Contacts:Timucin Engin, Dubai (971) 4-372-7152;
Mirko Sanna, Milan (39) 02-72111-275;
Alessandro Ulliana, Milan (39) 02-72111-228;

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