Why a regional credit rating agency?

Traditionally, rating agencies have assigned ratings with respect to two different comparison sets - a global scale and a national scale. A global scale credit rating is assigned in comparison to all debt issuing entities across the world. A national scale credit rating is assigned in comparison to debt issuing entities in the financial markets of individual nations.

Traditionally, rating agencies have assigned ratings with respect to two different comparison sets - a global scale and a national scale. A global scale credit rating is assigned in comparison to all debt issuing entities across the world. A national scale credit rating is assigned in comparison to debt issuing entities in the financial markets of individual nations.

However, for regions such as the Caribbean, which comprise many small national economies, global scale ratings are inadequate. Assigned global scale ratings tend to be bunched at the lower end of the scale and the coverage by global scale ratings of debt-issuing entities is not extensive.

For these reasons, a regional scale comparison is more useful and relevant particularly where, as is the case in the Caribbean, the region's economies tend to be similar in economic, political and demographic structure.

Moreover, a regional rating is able to include far more locally and regionally contextual issues than can a global scale rating. By focusing on the Caribbean alone, CariCRIS ratings enhance the quality and extent of differentiation across local and regional credits. Therefore, CariCRIS ratings can provide the most relevant and comprehensive information about regional credits to all investors regional and global.