Bangkok--19 Oct--Standard & Poor's The number of sovereign governments seeking new ratings is on track to reach as many as 50 over the next decade as demand increases for more financial transparency in emerging markets, according to a report published by Standard & Poor's Ratings Services. The article, entitled "Credit FAQ: The Future Of Sovereign Credit Ratings," was published on RatingsDirect, Standard & Poor's Web-based credit analysis system, on Oct. 16, 2007. The report looks at the prospects for new sovereign ratings ahead of the meetings of the Board of Governors of the World Bank Group and the International Monetary Fund in Washington, D.C., on Oct. 20-22, 2007. Standard & Poor's rates 116 sovereigns-representing more than half of the 192 states that make up the U.N.-a dramatic increase from the seven sovereigns rated by Standard & Poor's in 1975. Sovereigns rated for the first time in 2007 include the Kingdom of Cambodia (April 18), the Emirate of Abu Dhabi (July 2), and the Republic of Belarus (August 21) "Sovereign ratings are no longer the preserve of governments that are seeking to access international bond markets," said David Beers, global head of Sovereign and International Public Finance ratings at Standard & Poor's. "Demand for new ratings is being driven by sovereigns that see a variety of advantages in having a globally accepted benchmark of creditworthiness, and not just by those sovereigns that plan to issue cross-border debt," he added. The report finds that rated bank loans and local currency bonds are now commonplace, and that ratings play an important role in the debt exchanges many governments use to emerge from default. Standard & Poor's ratings can also help to build a deeper local capital market, foster private sector access to cross-border finance (including foreign direct investment), and assist with greater public sector financial transparency. New ratings across the credit spectrum are likely to be assigned to governments in the Caribbean, South Asia, the Pacific, and sub-Saharan Africa in the coming decade. International organizations are playing a significant role in generating interest in ratings. The U.N. Development Programme, for instance, has joined with Standard & Poor's in an initiative to facilitate sovereign ratings in sub-Saharan Africa and other regions. In the past four years, this partnership has led to new ratings on several governments in sub-Saharan Africa, Europe, and Asia. "Many governments in Africa and other regions have launched wide-ranging economic and financial reform, and they see that credit ratings can help support that effort," noted Mr. Beers. "It is a vital step in helping to mobilize the private sector capital essential for their economic development," he concluded. The report is available to subscribers of RatingsDirect, the real-time Web-based source for Standard & Poor's credit ratings, research, and risk analysis, at www.ratingsdirect.com. If you are not a RatingsDirect subscriber, you may purchase a copy of the report by calling (1) 212-438-9823 or sending an e-mail to [email protected]. Ratings information can also be found on Standard & Poor's public Web site at www.standardandpoors.com; select Ratings in the left navigation bar, then Credit Ratings Search. Alternatively, call one of the following Standard & Poor's numbers: Client Support Europe (44) 20-7176-7176; London Press Office Hotline (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5914; or Moscow (7) 495-783-4017. Members of the media may also contact the European Press Office by sending an e-mail to [email protected].