Hello, I would like to ask how to figure out the country defeault spread according to ratings of the particular country. I found material regarding this matter named "Risk premiums on other markets" on this web site:http://pages.stern.nyu.edu/~adamodar/. IN xls file you can find a chart where to each country ratings is assigned default spread in basis points. And Im am asking, how Mr. Damodaran stated this default spreads to a particular country ratings...?

Question

Hello, I would like to ask how to figure out the country defeault spread according to ratings of the particular country. I found material regarding this matter named "Risk premiums on other markets" on this web site:http://pages.stern.nyu.edu/~adamodar/. IN xls file you can find a chart where to each country ratings  is assigned  default spread in basis points. And Im am asking, how Mr. Damodaran stated this default spreads to a particular country ratings...?

anonymous · Answer

Prof.Damodaran has explained the calculation of default spread from Sovereign Country rating in his site: http://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/ctryprem.html Hope this should help. Please note that he uses US as home country.