Abstract:

Rating is a comprehensive and independent analysis that assesses the ability to settle liabilities, determines the degree of business risk for foreign firms within the state, and quantifies the likelihood that the rated country can pay its liabilities. Sovereign credit ratings reflect the capacity and willingness of sovereign obligors to meet their debt service payments. They are based on a lot of criterias, among others considerations, economic performance, loan default history and political factors. The main objective of the article is to assess the country's rating assigned by the leading rating agencies. The first chapter evaluates the theoretical background of the problem. There are also briefly described the individual rating agencies. The second chapter describes the methodology on the basis of which the rating is assigned. The third chapter contains the results of the research. The last chapter summarizes the whole aim of the article and the future direction of research. Rating can also reflect the state of the economy, economic results and its direction, political stability. For the investor, rating downgrades mean the risk that the deposited funds may not be returned. there is also a link between rating and earning management, where the development of earning management is linked to the future development of the rating itself.