How An Erosion Of Preferred Creditor Treatment Could Lead To Lower Ratings On Multilateral Lending Institutions - S&P Global Ratings’ Credit Research

How An Erosion Of Preferred Creditor Treatment Could Lead To Lower Ratings On Multilateral Lending Institutions

How An Erosion Of Preferred Creditor Treatment Could Lead To Lower Ratings On Multilateral Lending Institutions - S&P Global Ratings’ Credit Research
How An Erosion Of Preferred Creditor Treatment Could Lead To Lower Ratings On Multilateral Lending Institutions
Published Aug 26, 2013
Published Aug 26, 2013
Price US$ 600.00  |  Buy this Report Now

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Abstract:

Preferred creditor treatment (PCT) is an important element in Standard&Poor's Ratings Services' ratings on multilateral lending institutions (MLIs). PCT rests on an assumption regarding sovereign borrowers' future behavior. PCT positively affects MLIs' asset quality and risk-weighted capital ratios and, therefore, MLIs' creditworthiness. Should we come to believe that our assumption that MLIs will be paid more punctually than commercial or bilateral creditors will no longer hold, we could lower our MLI ratings. (Watch the related CreditMatters TV segment titled, "How An Erosion Of Preferred Creditor Treatment Could Lead To Lower Ratings On Multilateral Lending Institutions," dated Aug. 26, 2013.) Priority of payment in the event of a sovereign default arises in the context of debt sustainability. A government

  
Report Type:

Commentary

Sector
Global Issuers, Structured Finance
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "How An Erosion Of Preferred Creditor Treatment Could Lead To Lower Ratings On Multilateral Lending Institutions" Aug 26, 2013. Alacra Store. Mar 29, 2020. <http://www.alacrastore.com/s-and-p-credit-research/How-An-Erosion-Of-Preferred-Creditor-Treatment-Could-Lead-To-Lower-Ratings-On-Multilateral-Lending-Institutions-1183487>
  
APA:
S&P Global Ratings’ Credit Research. (). How An Erosion Of Preferred Creditor Treatment Could Lead To Lower Ratings On Multilateral Lending Institutions Aug 26, 2013. New York, NY: Alacra Store. Retrieved Mar 29, 2020 from <http://www.alacrastore.com/s-and-p-credit-research/How-An-Erosion-Of-Preferred-Creditor-Treatment-Could-Lead-To-Lower-Ratings-On-Multilateral-Lending-Institutions-1183487>
  
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