In recent years, investors are increasingly focusing on international diversification due to the inevitable globalisation of markets, and due to this the demand for sovereign ratings has increased manifold. Sovereign credit rating indicates the performance of a country on economic, political and financial fronts from the point of its ability in repayment of debt. It can affect the cost of capital of a company, its cash flows, its equity markets, and its firms’ ability to raise capital on better terms. Due to its great importance for a country and the investors, sovereign credit rating emerged as an important topic of research. The aim of the present study is to highlight and explore the important research streams around sovereign credit ratings by summarising much of the available literature related to the topic. The study can provide insight to the future researchers about the areas sufficiently explored so that they can explore new areas of research related to sovereign credit ratings.