Medium-Long Term Commercial and Sovereign
Commercial Country Ceiling
The Commercial Country Ceiling (CCC) is meant to represent the best possible rating that can be assigned to commercial obligors domiciled in a country. The CCC is impacted by the SPD, political risks (transfer and inconvertibility, political violence, expropriation) and other mitigating or exacerbating factors.
The likelihood over the medium- to long-term of government action (e.g. outright seizure of an asset/invest- ment or less pronounced interference such as unjustified non-renewal of required permits or licenses) or weak governance conditions (e.g. a weak rule of law or high levels of corruption) having a significant impact on a country’s commercial environment.
Transfer and Conversion
The likelihood, over the medium- to long-term, of a government imposing conversion or transfer restrictions that significantly effects the commercial environment. Conversion restrictions could include measures that prevent companies from converting local currency to hard currency, while transfer restrictions would be measures that inhibit the transfer of said hard currency out of the host country by legal means.
The likelihood, over the medium- to long-term, of an act of political violence occurring in a country that significantly impacts the country’s commercial environment. Political violence events can include: acts of war (declared or undeclared), insurrection, revolution, rebellion, riot, terrorism, sabotage, civil disturbance, or other such violent acts that are politically motivated.
The sovereign Probability of Default (SPD) measures the ability and willingness of a sovereign to honour its financial obligations over the medium-long term.