KBRA Europe (KBRA) releases research detailing how shrewd and effective sovereign debt management has helped to mitigate sensitivity to interest rate increases.

Euro area sovereigns have taken advantage of low interest rates in recent years and have restructured their debt profiles. These sovereigns’ actions help delay the impacts of higher interest costs, alleviating near-term pressure on government budgets. Despite a substantial increase in issuance costs for euro area sovereigns over the last year, the average cost of debt outstanding remains relatively stable and at a manageable level, which affords them greater funding flexibility.

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KBRA is a full-service credit rating agency registered in the U.S., the EU and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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