Determinants of credit ratings: evidence from panel discrete model
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[1] Kyrgyz Turkish Manas University
Kyrgyz Turkish Manas University
Kirguistán
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- Localización: Economics and Business Letters, ISSN-e 2254-4380, Vol. 9, Nº. Extra 3, 2020 (Ejemplar dedicado a: Selected papers from 7th International PhD Meeting in Economics 2019), págs. 240-247
- Idioma: inglés
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Resumen
This study aims to explore how changes in explanatory variables may affect the probability of sovereign credit ratings assigned by Fitch, which is assumed to be a binary choice variable. For this purpose annual data of selected developed and developing countries for the period 2002-2016 have been used. In the empirical analysis the binary logit model has been applied. The estimation results indicate that all the explanatory variables are statistically significant in explaining credit ratings. Consistent with prior research, credit ratings are positively related to per capita gross domestic product, the level of economic development and export. In addition, credit ratings are negatively related to inflation, debt and default history.
