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Investigating The Determinants Of Long-Run Sovereign Rating

Author

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  • MIRICESCU, Emilian - Constantin

    (The Bucharest University of Economic Studies, Department of Finance and CEFIMO)

Abstract

The significance of sovereign rating for local and international investors is essential because in recent period many countries had problems concerning the payment of public loans. In most European Union countries government debt to GDP ratio exceeds the Maastricht ceiling and investors may be cautious at sovereign rating modifying. This paper focuses on long-run sovereign rating assigned by Standard & Poor’s for European Union countries. We will use the regression analysis in order to investigate quantitative and qualitative determinants of long-run sovereign rating.

Suggested Citation

  • MIRICESCU, Emilian - Constantin, 2014. "Investigating The Determinants Of Long-Run Sovereign Rating," Studii Financiare (Financial Studies), Centre of Financial and Monetary Research "Victor Slavescu", vol. 18(3), pages 25-32.
    • Handle: RePEc:vls:finstu:v:18:y:2014:i:3:p:25-32
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    References listed on IDEAS

    as
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    5. Mr. Christian B. Mulder & Brieuc Monfort, 2000. "Using Credit Ratings for Capital Requirementson Lending to Emerging Market Economies: Possible Impact of a New Basel Accord," IMF Working Papers 2000/069, International Monetary Fund.
    6. António Afonso & Pedro Gomes & Philipp Rother, 2011. "Short‐ and long‐run determinants of sovereign debt credit ratings," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 16(1), pages 1-15, January.
    7. António Afonso & Pedro Gomes & Philipp Rother, 2006. "What “Hides” Behind Sovereign Debt Ratings?," Working Papers Department of Economics 2006/35, ISEG - Lisbon School of Economics and Management, Department of Economics, Universidade de Lisboa.
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    More about this item

    Keywords

    regression analysis; public debt; European Union member states;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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