Political Risk and the Politics of Risk

This book provides a critical analysis of how credit rating agencies engage with the political and economic dynamics of developing countries. Focusing on Brazil and Argentina, it demonstrates how S&P Global, Moody’s Investor Service, and Fitch Ratings—the “Big Three”—employ a politics of risk that seeks to advance the interests of global financial markets while interacting with domestic governance processes. Drawing on underexplored materials such as sovereign rating reports and press releases, the book examines how these agencies deploy their evaluations and public statements as instruments of this politics of risk. Their actions respond to the political risk conditions they identify, which are shaped by factors such as government ideology and shifts in the international context. Through detailed case studies of Brazil and Argentina, the book shows how credit rating agencies become part of wider political disputes over economic policy and governance in the Global South. Bringing together key debates in International Political Economy, Political Risk and the Politics of Risk sheds light on the intersections of financialization, neoliberalism, and the tensions between financial globalization and democratic governance. By revisiting recent political and economic developments in two of Latin America’s largest economies, the book fills a crucial gap in the literature and offers fresh insights into the often-overlooked role of credit rating agencies in contemporary global capitalism. This book will be of interest to scholars, students, and practitioners in International Political Economy, political science, development studies, and Latin American studies, as well as those seeking to understand the complex relationships between finance, politics, and power in emerging economies. Pedro Lange Machado holds a doctoral degree in Political Science and is a postdoctoral fellow at the Brazilian Center of Analysis and Planning (Cebrap). His research focuses on International Political Economy, with particular attention to the politics of finance and the tensions between democratic governance and global financial markets. His current work also explores the political economy of the climate crisis, with a focus on sustainable finance.