Fitch Updates Country Ceiling Criteria
Country Ceilings reflect the risk of capital and/or exchange controls being imposed by a sovereign that would prevent the private sector to convert local currency into foreign currency and transfer the proceeds to non-resident creditors, also known as the transfer and convertibility (T&C) risk. Country Ceilings are not ratings but rather a key analytical input and constraint on the foreign-currency ratings of issuers and transactions originating in a particular country.
Fitch's approach to Country Ceilings continues to be based on an analysis of the institutional constraints on imposing or tightening controls, the degree of trade and financial integration with the rest of the world, which may increase the cost of imposing controls, and aspects of the macro policy environment, in particular the exchange rate regime and susceptibility to high inflation.
The criteria report titled 'Country Ceilings' is available at www.fitchratings.com and replaces the report of the same name dated 28 August 2014.