Study On The Sovereign Rating Standards After The Financial Crisis

Through rating on the national debt, Sovereign credit guide capital investmentand financial decision-making. It is directly related to the pricing of financial products,and directly affects country’s credit market interest rates and exchange rate. It isclosely related with the national financial security. Finance is the core of moderneconomy, the financial competition is the core of international competition, and thefinancial security is the core of national economics security. China must speed up thedevelopment of credit rating industry with Chinese characteristics to safeguard thecountry’s financial sovereignty and economic security.This paper haves five parts: it focus on introducing the theories andbackground of sovereign credit rating; in the second parts, it study on sovereign creditrating， including the definition and histories of sovereign risk and sovereign creditrating, the determinants of sovereign credit ratings, and three major models of rating;in the third par, study on the impact of sovereign risk by financial crisis. Through astudying on one case analyzing the role and function of sovereign risk in the financialcrisis; in the fourth part, study on the impact of sovereign credit rating on financialsecurity, on the base of introducing the current situation of sovereign credit ratingmarket and the realties the U.S. monopoly and China is a serious infiltration, showingits important role on financial sector, then emphasize on the strategic role of sovereigncredit rating on financial security; in the last part, propose some measures ofimproving China’s sovereign credit rating, including improving the relevant legalsystem, strongly support local sovereign credit rating agencies with national brand’s,to ensure that China has the right to speak in international credit rating market andChinese financial security.