The Relative Importance of Political and Economic Variables in Creditworthiness Ratings
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Summary:
This study examines the relative importance of political and economic variables in the determination of a country’s standing in credit ratings provided by commercial rating agencies. It finds that creditworthiness appears to be determined primarily by economic variables. While including political events can improve the explanatory power of the regressions, the exclusion of political variables does not bias the parameter estimates for the effects of economic variables.
Series:
Working Paper No. 1998/046
Subject:
Balance of payments Credit ratings Current account Export performance External debt Financial institutions International trade Money Treasury bills and bonds
English
Publication Date:
April 1, 1998
ISBN/ISSN:
9781451846522/1018-5941
Stock No:
WPIEA0461998
Pages:
13
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