...A Country Ceiling serves as a cap or limit to the Foreign-Currency Issuer Default Rating (FC IDR) of an issuer domiciled within the relevant country. It recognises that a sovereign may restrict private-sector corporations from converting local currency (LC) to any foreign currency (FC) under a stress scenario, and/or may not allow the transfer of FC abroad to service FC debt obligations. This is known as transfer and convertibility (T&C) risk. Recognising these constraints, an issuer's FC IDR ¡ the ability to pay FC debt to international investors ¡ is generally constrained by the Country Ceiling. This report outlines the considerations that may allow a non-financial corporate issuer or its issue ratings to `pierce' a Country Ceiling....
