Sovereign ratings are primarily used to assess the creditworthiness of a country, which helps investors and lenders determine the risk associated with investing in that country.

Higher sovereign ratings generally lead to increased foreign investment, as investors are more confident in the stability and creditworthiness of the country.

The relationship between sovereign ratings and social development is complex and can vary depending on the specific country and its circumstances. In some cases, higher sovereign ratings may lead to increased social spending and improved social development outcomes, while in other cases, the impact may be more limited.

Developing countries often face a combination of challenges in improving their sovereign ratings, including lack of political stability, high levels of public debt, and weak economic growth.

Developing countries can improve their sovereign ratings by implementing a combination of strategies, including fiscal reforms to reduce public debt, promoting economic growth and diversification, and improving governance and transparency.