Understanding the determinants of sovereign debt ratings: evidence for the two leading agencies

Bibliographic Details
Main Author: Afonso, António
Publication Date: 2003
Format: Article
Language: eng
Source: Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
Download full: http://hdl.handle.net/10400.5/25669
Summary: An analysis of the possible determinants of sovereign credit ratings assigned by the two leading credit rating agencies, Moody's and Standard and Poor's, is conducted in this paper by using linear, logistic, and exponential transformations of the rating scales. Of the large number of variables that can be used, the set of explanatory variables selected in this study is significant in explaining the credit ratings. Namely, six variables appear to be the most relevant to determining a country's credit rating: GDP per capita, external debt, level of economic development, default history, real growth rate, and inflation rate.
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spelling Understanding the determinants of sovereign debt ratings: evidence for the two leading agenciesCredit RatingsMoody's and Standard and Poor'sGDP per CapitaExternal DebtEconomic DevelopmentInflation RateAn analysis of the possible determinants of sovereign credit ratings assigned by the two leading credit rating agencies, Moody's and Standard and Poor's, is conducted in this paper by using linear, logistic, and exponential transformations of the rating scales. Of the large number of variables that can be used, the set of explanatory variables selected in this study is significant in explaining the credit ratings. Namely, six variables appear to be the most relevant to determining a country's credit rating: GDP per capita, external debt, level of economic development, default history, real growth rate, and inflation rate.SpringerRepositório da Universidade de LisboaAfonso, António2022-10-06T10:44:37Z20032003-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.5/25669engAfonso, António .2003. “Understanding the determinants of sovereign debt ratings: evidence for the two leading agencies”. Journal of Economics and Finance, Vol. 27, No. 1: pp. 56-74.info:eu-repo/semantics/openAccessreponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiainstacron:RCAAP2025-03-17T16:23:43Zoai:repositorio.ulisboa.pt:10400.5/25669Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireinfo@rcaap.ptopendoar:https://opendoar.ac.uk/repository/71602025-05-29T04:12:32.195425Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologiafalse
dc.title.none.fl_str_mv Understanding the determinants of sovereign debt ratings: evidence for the two leading agencies
title Understanding the determinants of sovereign debt ratings: evidence for the two leading agencies
spellingShingle Understanding the determinants of sovereign debt ratings: evidence for the two leading agencies
Afonso, António
Credit Ratings
Moody's and Standard and Poor's
GDP per Capita
External Debt
Economic Development
Inflation Rate
title_short Understanding the determinants of sovereign debt ratings: evidence for the two leading agencies
title_full Understanding the determinants of sovereign debt ratings: evidence for the two leading agencies
title_fullStr Understanding the determinants of sovereign debt ratings: evidence for the two leading agencies
title_full_unstemmed Understanding the determinants of sovereign debt ratings: evidence for the two leading agencies
title_sort Understanding the determinants of sovereign debt ratings: evidence for the two leading agencies
author Afonso, António
author_facet Afonso, António
author_role author
dc.contributor.none.fl_str_mv Repositório da Universidade de Lisboa
dc.contributor.author.fl_str_mv Afonso, António
dc.subject.por.fl_str_mv Credit Ratings
Moody's and Standard and Poor's
GDP per Capita
External Debt
Economic Development
Inflation Rate
topic Credit Ratings
Moody's and Standard and Poor's
GDP per Capita
External Debt
Economic Development
Inflation Rate
description An analysis of the possible determinants of sovereign credit ratings assigned by the two leading credit rating agencies, Moody's and Standard and Poor's, is conducted in this paper by using linear, logistic, and exponential transformations of the rating scales. Of the large number of variables that can be used, the set of explanatory variables selected in this study is significant in explaining the credit ratings. Namely, six variables appear to be the most relevant to determining a country's credit rating: GDP per capita, external debt, level of economic development, default history, real growth rate, and inflation rate.
publishDate 2003
dc.date.none.fl_str_mv 2003
2003-01-01T00:00:00Z
2022-10-06T10:44:37Z
dc.type.status.fl_str_mv info:eu-repo/semantics/publishedVersion
dc.type.driver.fl_str_mv info:eu-repo/semantics/article
format article
status_str publishedVersion
dc.identifier.uri.fl_str_mv http://hdl.handle.net/10400.5/25669
url http://hdl.handle.net/10400.5/25669
dc.language.iso.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv Afonso, António .2003. “Understanding the determinants of sovereign debt ratings: evidence for the two leading agencies”. Journal of Economics and Finance, Vol. 27, No. 1: pp. 56-74.
dc.rights.driver.fl_str_mv info:eu-repo/semantics/openAccess
eu_rights_str_mv openAccess
dc.format.none.fl_str_mv application/pdf
dc.publisher.none.fl_str_mv Springer
publisher.none.fl_str_mv Springer
dc.source.none.fl_str_mv reponame:Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
instname:FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
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instname_str FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
instacron_str RCAAP
institution RCAAP
reponame_str Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
collection Repositórios Científicos de Acesso Aberto de Portugal (RCAAP)
repository.name.fl_str_mv Repositórios Científicos de Acesso Aberto de Portugal (RCAAP) - FCCN, serviços digitais da FCT – Fundação para a Ciência e a Tecnologia
repository.mail.fl_str_mv info@rcaap.pt
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