Download INFLUENCE OF WORLD RATING AGENCIES ON INTRODUCING

INFLUENCE OF WORLD RATING AGENCIES ON INTRODUCING CHANGES TO
THE FINANCIAL SYSTEMS OF WORLDWIDE COUNTRIES.
In this article you will have an opportunity to see the world ratings of such countries as
Kazakhstan, Great Britain, USA, France, Germany, Russia and Thailand on various indicators. The
presented ratings show that no rating agency can reflect all the criteria of the financial systems of the
countries, and also that countries in one rating can occupy leading positions, in the other the register
is on the bottom lines. The rank occupied in the rating influences the introduction of changes in the
financial systems of countries that aim to achieve higher performance by changing their internal
mechanisms.
A rating is a register showing the degree of development of various aspects of the spheres of human
activity. In the economic sphere, country ratings are also compiled according to various criteria. This activity
is handled by various world rating agencies. Some of the most famous world rating agencies are:
•
Standard
&
Poors,
•
Moody's,
•
Fitch
Ratings.
The oldest of these three rating agencies is Standard & Poors, which has occupied a niche in this field for
more
than
150
years.
Next is Moody's, which was created in 1909, and in three years another rating agency called Fitch Ratings
opens. All three rating agencies award both international and national ratings.
Table
1.
Estimation
of
investment
categories
from
world
rating
agencies.
Country
Standard
&
Poor's
Moody's
Fitch
Ratings
Kazakhstan
BBB
+
Baa2
BBB
+
United
Kingdom
AAA
Aa1
AA
+
United
States
AA
+
Aaa
AAA
France
AA
+
Aa1
AA
+
Germany
AAA
Aaa
AAA
Russia
BBB
Baa1
BBB
Thailand
BBB
+
Baa1
BBB
+
According to Standard & Poors, the most commonly used terms for the countries we are considering are as
follows:
[1]:
• AAA - means a very high ability on time and to fully fulfill its obligations on debt;
• AA - means a high degree of fulfillment of obligations in due time and in full;
• BBB - means sensitivity to the global economic environment, as well as a sufficient ability to fully and timely
fulfill
its
debt
obligations.
According
to
Moody's
rating:
• Aaa means that the countries that received this indicator have the highest degree of creditworthiness.
•
Aa
means
a
very
high
degree
of
creditworthiness.
•
Vaa
an
average
degree
of
creditworthiness.
Fitch
Ratings:
• AAA - assigned to countries with the highest level of creditworthiness and low credit risks.
• AA - is assigned to countries with high creditworthiness and low credit risks.
• BBB - is assigned to countries with good creditworthiness and low credit risks.
All considered countries have investment grade ratings. The leading position according to all three world
rating agencies is the Federal Republic of Germany. For other countries, the opinions of rating agencies do
not always coincide, so the UK has a lower rating by Fitch's decision, and the United States of America - by
Standard & Poor's. The lowest ratings from the countries taken for analysis from Kazakhstan and Russia,
which
is
a
reflection
of
the
actual
situation
on
the
world
stage.
There are many criteria for compiling an economic rating for the countries of the world. For example, such
as:
•
Rating
of
ease
of
doing
business;
•
Registration
of
enterprises;
•
Obtaining
construction
permits;
•
Connection
to
the
power
supply
system;
•
Registration
of
property;
•
Lending;
•
Protection
of
investors;
•
Taxation;
•
International
trade;
•
Enforcement
of
contracts;
•
Resolving
insolvency,
etc.
Today, integration processes and globalization processes are taking place in the world, so the most
interesting criterion for consideration will be "International Trade" and "Protection of Investors".
Table
2.
Ratings
on
international
trade
and
investor
protection.
Country
International
trade
Protection
of
investors
Kazakhstan
186
22
United
Kingdom
16
10
USA
22
6
France
36
80
Germany
14
98
Russia
157
115
Thailand
24
12
Concerning the data in the above table, it is not possible to single out any country as a leader, since if one
indicator
is
high,
the
other
can
be
in
an
entirely
different
position.
With respect to the indicator of investor confidence, the leader is the United States of America, and investors
in the Russian Federation are the least protected. The Republic of Kazakhstan on this indicator is in the middle
among
seven
selected
countries.
As for international trade, this sector is most developed in the Federal Republic of Germany, which confirms
the confidence of world rating agencies in the reliability and development of the economy of this country. In
terms of "International Trade", the last place in the mini-rating of seven countries is occupied by the Republic
of
Kazakhstan,
and
in
the
"golden
seridine"
is
the
Kingdom
of
Thailand.
Equally important indicators of the development of the economy are - "Lending" and "Taxation", which also
compiles
country
ratings.
Table
3.
Ratings
on
lending
and
taxation.
Country
Lending
Taxation
Kazakhstan
86
18
United
Kingdom
1
14
United
States
of
America
3
64
France
55
52
Germany
28
89
Russia
109
56
Thailand
73
70
According to the two criteria being analyzed, among the selected countries, the UK has the best results,
namely, the leading place in lending, and the 14th in terms of taxation. At the last line in the lending area,
among the considered range, is the Russian Federation, and on taxation - the Federal Republic of Germany.
In today's world, one of the most significant ratings is the country's competitiveness rating. Republic
References.
1. Anulova G.N. International monetary and financial organizations and developing countries.
Moscow: Nauka, 2004.
2. http://www.standardandpoors.ru
3. http://moodys.ru
4. http://fitchratings.ru
5. http://en.tradingeconomics.com/country-list/unemployment-rate
6. Institute of Management Development: A rating of competitiveness of the countries of the
world in 2014. [Electronic resource] // Center for Humanitarian Technologies. - 2014.05.22.
URL: http: //gtmarket.ru/news/2014/05/22/6780