In today's globalised financial world, counterparty risk is an ever-present concern that requires careful assessment and management. As financial institutions establish more complex transactions and relationships across international borders, evaluating the creditworthiness of counterparties has become a crucial component of risk governance. While internal risk models play an essential role, credit ratings produced by external rating agencies also provide a standardised metric that market participants rely on to compare the relative risk of exposure to different entities worldwide.

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