Observed impact of COVID 19 government support measures on credit ratings

The economic shock from the COVID-19 health crisis was unprecedented in magnitude and speed. In response, GSMs were rapidly deployed across the globe by jurisdictions at an exceptional scale. These measures were rolled out across fiscal, monetary, and financial channels and varied in their impact across advanced economies (AEs) and emerging market economies (EMEs).

The purpose of this report is to provide a summary of the observed impact of COVID-19 government support measures (“GSMs”) on credit ratings and credit ratings methodologies. To develop this understanding, the International Organization for Securities Commissions (IOSCO), has carried out a review analysing GSMs and their impact on credit ratings and credit rating methodologies across the three largest credit rating agencies (the “CRAs”). The review is based on publicly available information gathered from the CRAs as well as other industry publications.