What is sovereign credit rating?

Investment grade and speculative grade. Sovereign credit ratings are usually divided into investment grade and speculative grade. Investment-grade ratings usually include AAA, AA, A and BBB, while speculative ratings include BB, B, CCC, CC and C. The higher the rating, the lower the credit risk and the stronger the solvency. On the contrary, the lower the rating, the higher the national credit risk and the weaker the solvency.