What are the effects of a deterioration in the average rating?

Given the succession of recessions and the rise in debt ratios, the average ratings of countries and companies are deteriorating over time (we look at the example of the euro zone). The question then arises: does the deterioration in the average rating have an effect on funding costs, or is it only the deviation from the average rating (i.e. the relative rating) that matters for borrowers? We see that for both companies and countries: The average risk premium does not react or reacts only slightly to a deterioration in the average rating; An issuer's risk premium depends on the deviation of its rating from the average rating. It is therefore the rating relative to the average rating that counts , and not , or only slightly, the deterioration of the average rating.