In the context of Fiscal Strength, what does 'Debt Affordability' measure?
Explanation
Affordability focuses on the flow cost (interest payments) relative to available resources (revenue/GDP).
Other questions
Which of the following is considered a qualitative factor regarding 'Government Institutions and Policy' in sovereign credit analysis?
What legal concept prevents investors from forcing a sovereign government to declare bankruptcy or liquidate assets?
Which factor is categorized under 'Monetary Effectiveness' in qualitative sovereign analysis?
Under 'Economic Flexibility', which of the following is a key assessment point?
Which ratio is used to measure 'Debt Burden' under Fiscal Strength?
A country has Government Interest Payments of 50 billion and Total Revenue of 250 billion. What is its Interest to Revenue ratio?
Which quantitative factor category includes 'Balance of Payments' and 'Currency Reserves'?
How is 'Real GDP Growth' calculated based on the provided text?
Which of the following describes 'Supranational Issuers'?
What is a primary characteristic of General Obligation (GO) Bonds?
Which metric is crucial for the risk assessment of Revenue Bonds?
What distinguishes 'Agencies' (Quasi-governmental bodies) in terms of credit rating?
If a country has Real GDP of 100 in year T-1 and 105 in year T, what is the Real GDP Growth rate?
Which qualitative factor considers the 'Adaptability to Shocks'?
Which ratio measures the 'Size of Economy'?
What does 'Reserve Ratio' specifically calculate in the context of External Stability?
Which factor under 'Government Institutions and Policy' involves the predictable enforcement of contracts?
What is the primary risk associated with Revenue Bonds compared to General Obligation Bonds?
Which entity type typically issues debt to finance specific policy goals and is established by the government?
Which ratio measures the volatility of economic growth?
In the 'External Debt Due' calculation, what is the numerator?
Which qualitative factor includes 'Geopolitical Risk'?
Regional Government Issuers are typically:
Which factor falls under 'Fiscal Flexibility' in qualitative analysis?
What does 'LT External Debt' usually stand for in the context of 'External Debt Burden'?
Which of the following is considered a source of Non-Sovereign Government Debt?
Calculate the Debt to GDP ratio if General Government Debt is 500 million and GDP is 2,000 million.
Which quantitative factor category includes 'Cyclicality'?
What does 'Global Currency Status' contribute to in credit analysis?
Which of the following is an example of a 'Financial System Development' factor?
What is 'Fiscal Discipline' primarily concerned with?
General Obligation (GO) bonds are evaluated based on:
Which ratio includes 'General Government Debt' in the numerator?
Which category of non-sovereign issuer enjoys high credit ratings due to collective support from multiple nations?
The 'Debt to Revenue' ratio is calculated as:
Which qualitative factor involves 'Stable, Predictable Executive, Legislative and Judicial' institutions?
What is the purpose of the 'Per Capita GDP' metric?
Which type of non-sovereign debt is 'backed by the government for specific policy goals'?
What does 'FX Reserves to GDP' measure?
Which factor is NOT a component of 'Monetary Effectiveness'?
If a government has 10 billion in interest payments and a GDP of 500 billion, what is the Interest to GDP ratio?
The 'Debt Service Coverage Ratio' is most relevant for which type of bond?
Which qualitative factor considers 'Competitiveness'?
What does 'Interest to GDP' measure?
A 'Revenue Bond' is typically issued for:
What is 'External Debt Burden' defined as in the quantitative factors?
Which factor falls under 'Fiscal Strength' in the quantitative analysis section?
What does 'Access to External Funding' indicate in sovereign analysis?
Why might a 'Regional Government Issuer' have a different credit rating than the Sovereign?