3. Sovereign Credit Ratings Criteria. The evaluation of credit risk and all other relevant risks associated with the multitude of borrowers on world debt mar- kets requires a structured approach to international risk assessment. Use Standard & Poor's criteria, described in depth on its Web site, to differentiate the various risks (local currency risk, default risk, currency risk, transfer risk, and so on) contained in major sovereign ratings worldwide. Standard & Poor's http://www.ratings.com/criteria/sovereigns.index/