The Benefits of SME Ratings

Chapter Four explores how these credit ratings can benefit individual countries where they are made available. We will examine some of the empirical studies that have been conducted that measured the impact these ratings have had on rated entities. The chapter will also cover some of the broader benefits of these ratings on traditional and non-traditional funding channels. As the concept is still in its infancy stage, there is little or no empirical evidence of the benefits these ratings can provide to non-traditional funding channels. We will then examine the potential benefits which are based on both market trends and the technical dynamics behind these ratings.