Determinants of sovereign risk from the perspective of rating agencies
Main Article Content
Abstract
To be considered Investment Grade, a country must be classified as such by at least two of the three major credit rating agencies: Standard & Poor's, Moody's, and Fitch. Based on their criteria, we identify that twelve common variables among the proprietary methodologies account for over 90% of the variation in the ratings of 200 nations between 2000 and 2014. Financial openness appears to help sovereign ratings, whereas Fitch and Moody's seem more lenient in their assessments of industrialized countries.
Article Details
How to Cite
Yamanari, C. Y., & de Guimarães e Souza, G. J. (2022). Determinants of sovereign risk from the perspective of rating agencies. Brazilian Review of Finance, 20(3), 1–30. https://doi.org/10.12660/rbfin.v20n3.2022.86117
Section
Long Paper
This work is licensed under a Creative Commons Attribution 4.0 International License.
Articles published from Vol. 22 No. 4 (October–December 2024) onward are licensed under the Creative Commons Attribution 4.0 International License (CC BY 4.0). Earlier articles carry the license stated in their PDF.