New credit rating model predicts country reliability with pinpoint accuracy.
Credit rating agencies help investors by giving credit ratings to countries. These ratings show if a country can pay its debts. However, agencies have been criticized for not being transparent and making mistakes, especially during financial crises. To improve this, a new model was created using different factors like politics and economics. The model gives accurate ratings for developed countries, but may have small differences for developing countries. Credit rating agencies should be more transparent about how they make their ratings to understand these differences better.