The Relative Importance of Political and Economic Variables in Creditworthiness Ratings

Author/Editor:

International Monetary Fund

Publication Date:

April 1, 1998

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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. 98/46

English

Publication Date:

April 1, 1998

ISBN/ISSN:

9781451846522/1018-5941

Stock No:

WPIEA0461998

Format:

Paper

Pages:

13

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