There are several countries in the world that have very high credit ratings. Of note, there are multiple organizations that provide credit ratings, so the credit ratings can vary by country and by the rating agency. In general, countries that are fully developed have higher credit ratings. For example, the United States generally has a credit rating of AAA, which is the highest credit rating a country can have. New line. There are several other countries in Europe and Asia that also have exceptional credit ratings. Some of the top examples include Australia, Canada, Denmark, Germany, Sweden, Switzerland, Norway, and Hong Kong. These are all countries that generally carry a credit rating of AAA.
What Is the Lowest Credit Rating a Country Can Have?
There are several particularly low credit ratings that a company can receive. There are some companies that rate certain countries as having a credit rating of “junk.” This is the same term used to refer to “junk” bonds, which means they are generally worthless. There are some credit ratings that use a formal rating of “SD,” which stands for selective default. This means that some countries choose not to pay back some of their bonds, which means that investors should think twice before purchasing them.
Aside from these ratings, the lowest credit rating that a country can receive is CCC. This is the only credit rating that is above “junk” or “SD,” and it is not a credit rating that a country should have.
Are There Countries That Default on Their Bonds?
Yes, there are some countries that have defaulted on their bonds. In general, these are countries that are still developing, so their economies are not yet strong enough to sustain some of the bonds they hand out. Some of the countries that have received an SD rating include Zambia, Venezuela, Suriname, Lebanon, Belize, Russia, and Sri Lanka. Of note, the Russian economy recently took a major hit because of the invasion of Ukraine. There are several other countries that have received a credit rating of CCC. They include Belarus, Ethiopia, Mozambique, the Congo, Argentina, and Angola. Credit ratings are reassessed from time to time, so these ratings can change from time to time as well.
Why Do Country Credit Ratings Matter?
There are several reasons why country credit ratings matter. First, they matter because they influence whether their population will buy their bonds or not. If a country has a low credit rating, it could be very hard for it to raise money. The other reason why country credit ratings matter is that they influence whether that country can receive loans from other countries. For example, if one country needs money, and may try to borrow money from that other country. If the country does not have a very high credit rating, it might have a hard time finding another country to loan it money because there is no guarantee the money will ever be paid back.
FAQs
Download Table Data
| Country | SP Global Ratings |
|---|
| Switzerland | AAA |
| Singapore | AAA |
| Denmark | AAA |
| Norway | AAA |
129 more rowsS&P, the other major global rating agency, also rates China A+, the equivalent of Moody's current A1 rating.
What is Argentina's credit rating? ›
Fitch's proprietary SRM assigns Argentina a score equivalent to a rating of 'CCC+' on the Long-Term Foreign-Currency IDR scale.
What is the credit rating of Israel? ›
Rating Action
On April 18, 2024, S&P Global Ratings lowered its long-term foreign and local currency sovereign credit ratings on Israel to 'A+' from 'AA-' and the short-term ratings to 'A-1' from 'A-1+'.
Which country has the highest debt in the World Bank? ›
India takes the top spot. The world's most populous country owed $38.3bn to the WB at the end of 2022, down by almost $1.5bn from a year earlier. India's outstanding balance is almost double that of the next biggest debtor, Indonesia, with $20.6bn.
Do other countries have credit scores like the US? ›
Countries around the world including Canada, the U.K., Spain, China, and Japan use credit scoring systems. Not all countries that use credit scores have systems like the U.S. Some only track negative marks like late or missed payments, while others track total debt or debt history.
What is Germany's credit rating? ›
Germany Credit Rating
| Rating Agency | Rating | Action |
|---|
| Standard & Poor's | AAA | outlook upgrade |
| Moody's Investors Service | Aaa | outlook upgrade |
| Fitch Ratings | AAA | |
| DBRS | AAA | |
France's credit ratings
| Agency | Rating | Outlook |
|---|
| DBRS | AA-high | Stable |
| Fitch | AA- | Stable |
| Moody's | Aa2 | Stable |
| Standard & Poor's | AA- | Stable |
Credit rating is an assessment of the probability of default on payment of interest and principal on a debt instrument. It is not a recommendation to buy, sell or hold a debt instrument.
What is Venezuela's credit rating? ›
Venezuela currently holds a CCC credit rating from Standard & Poor, and around $120bn of external debt.
Rating Action
On April 19, 2024, S&P Global Ratings revised its outlook on Greece to positive from stable and affirmed its 'BBB-/A-3' long- and short-term foreign and local currency sovereign credit ratings.
What is the credit rating of Texas? ›
01Ratings
| Rating | Action | Type |
|---|
| AAA | Affirmed | Long Term Issuer Default Rating |
S&P raises Turkey's rating to 'B+' On Economic Rebalancing
The central bank has hiked rates by 3,650 basis points since June last year.
What credit rating does Russia have? ›
On March 3, 2022, we lowered our long-term sovereign credit rating on Russia to 'CCC-' from 'BB+' and kept the ratings on CreditWatch negative. Under our methodology, we cap the ratings on Russian local and regional governments at the level of the so...
What is Iran's credit rating? ›
Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed Iran's Long-Term Foreign Currency Rating (LT FCR) and LT Local Currency Rating (LT LCR) at 'B'. At the same time, CI Ratings has affirmed the sovereign's Short-Term (ST) FCR and ST LCR at 'B'. The Outlook on the ratings remains Stable.
What is the best credit score in the world? ›
A perfect score of 850 will give you bragging rights, but any score of 800 or up is considered exceptional and will usually give you access to the best rates on credit cards, auto loans, and any other loans.
What is the highest credit score in the country? ›
Minnesota has the highest average credit score. It has the highest FICO credit score of all states in 2024 at 742, which is 27 points above the national average.
What is the best credit rating in USA? ›
For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2023, the average FICO® Score☉ in the U.S. reached 715.
What is the US credit rating now? ›
Home / Economy / Articles / What is the US credit rating, and what does its downgrade mean? On August 1, 2023, Fitch Ratings, one of the country's three major credit rating agencies, announced that it had downgraded the US credit rating from AAA to AA+.
