Sovereigns Spotlight
Our sovereign ratings reflect our analysis of institutional and governance effectiveness, economic structure and growth prospects, external finances, and fiscal and monetary flexibility.
Trending
European Defense Funding: What Are The Options?
Limited fiscal space at the national level is pushing EU policymakers to explore alternative options to boost defense spending.
Even traditionally fiscally restrained European sovereigns appear to favor collective bond issuance to support further hikes in EU defense spending.
The European Union and the European Investment Bank as well as the European Stability Mechanism and the European Financial Stability Facility could present initial ways to provide additional funding for EU members.
However, given its long-term nature, sustained defense spending will require additional resources, forcing European sovereigns to find offsetting budgetary savings during an era of weak growth, political fragmentation, and aging demographics.
Rating Trends
Geopolitics
4 Dec, 2024
How Will Markets Navigate Ongoing Geopolitical Risks?
Financial markets in 2024 remained remarkably resilient to multiple sources of material geopolitical uncertainty. More volatility may be in store for 2025 in the face of what could be the resolution or escalation of some of the uncertainties.
Subnational Debt
Cyber Risk
24 Oct, 2024
U.K. Public Sector Is Increasingly Under Threat
The U.K. public sector remains a key target for cyber attacks. The increasing digitalization of public services, including the use of artificial intelligence, is adding to public sector entities' financial and operational risk. Despite increasing investments in cyber security overall, we believe that further cyber attacks could occur, potentially disrupting critical services and leading to financial and reputational damage.