Marion Boisseau-Sierra

Credit Agencies Disagreement on Sovereign Debt Levels

Despite its importance as an economic indicator, the measurement standards underlying the general government debt number remain non-comparable across countries. In response, credit rating agencies (CRAs) perform accounting adjustments to transform inconsistent fiscal data into best possible comparable figures for rating purposes. This study investigates how and why credit agencies disagree on the level and composition of sovereign debt owed by countries.