The sovereign credit ratings of the leading credit rating agencies are most visible through their outputs: an upgrade, a downgrade or a change in “outlook”. The evaluative work that produces those outcomes receives far less attention. Yet it is precisely that work that explains why credit rating agencies occupy such an influential position in international finance.
The recent case of Gabon provides an unusually clear opportunity to observe this process in action.
Gabon had recently:
revised its budget
widened its deficit – meaning that it expected government spending to exceed revenues by an even larger margin
