A Sovereign is a state that administers its own government and is not subject to or dependent on another sovereign for all or most prerogatives. In particular, one of the most important prerogatives of a sovereign, in our view, is the right to determine the currency it uses, as well as the political and fiscal frameworks in which it operates. Our sovereign ratings reflect our analysis of institutional and governance effectiveness, economic structure and growth prospects, external finances, and fiscal and monetary flexibility.