...the ratings agencies headed by Moody's, Standard & Poor's and Fitch...
...are controversial players on the world economic stage.
Their adjudications based on discussions with financial administrators...
...and meetings of ratings committees can have a significant effect...
...on a country or company standing in the financial community,...
...based as they are on political and economic factors.
While, in theory, these assessments are apolitical,...
...they can heavily influence investors,...
...informing them of the risks they'll be exposing themselves to,...
...and whether the country in question is able or willing to repay its debts.
A country's rating can be downgraded due to a variety of factors...
...like worrying growth potential...
...or a general inability to implement an efficient austerity plan,...
...as is the case in several European countries.
And once a country's credit rating has been downgraded,...
...it, in turn, means an increase in interest rates for that country...
...when it comes to borrowing,...
...making it even more expensive to pay off its debts.
Most of the countries rated pay the agencies to grade their debt standing.
This represents up to 90% of the agencies' revenues.