Answer the below questions. (a) Why do rating agencies assign a different rating to the debt of
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(a) Why do rating agencies assign a different rating to the debt of a sovereign entity based on whether the debt is denominated in a local currency or a foreign currency?
(b) What are the two general categories of risk analyzed by rating agencies in assigning a sovereign rating?
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a The reason for distinguishing between local debt ratings and foreign currency debt ratings is that historically the default frequency differs by the ...View the full answer
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