The latest Sovereign Review and Outlook report has been released by Fitch, according to which, it is estimating that the impact of the extraordinarily high levels of "sovereign intervention and support for the financial sector", in addition to the financial stimulus package offered and the severity of the global financial crisis, have all come together has hurt the high AA- and above sovereign credit profiles during 2009.

Governments which started the financial crisis with more limited financial flexibility and weaker fiscal position to begin with, have been most under pressure with regards to creditworthiness and hence sovereign ratings have been immediate.

In April this year, Ireland slipped down from its AAA rating, and Greece, which is currently at BBB+, has been knocked down twice and continues to stay on Negative Outlook. Ratings for Portugal and New Zealand have were also revised during 2009 and pulled into Negative.

The report has given due credit to the large AAA rated nations, which have more financial flexibility, and have displayed a remarkable capacity to absorb and finance the expansion of their respective balance sheets. However, to maintain the rating, a sovereign has to do more than just have the capacity to "finance large budget deficits over a prolonged period without financing stress".

The complete report, released as "Sovereign Review and Outlook", is now available for viewing on Fitch's official website - fitchratings. com.