European Parliament Library

Determinants of Investment Grade Status in Emerging Markets, Laura Jaramillo

Abstract
Emerging market countries seek investment grade status to lower financing costs for the sovereign, expand the pool of potential investors to institutional investors, and allow corporates the possibility of reducing their borrowing costs. Using a random effects binomial logit model on a sample of 48 emerging markets, the paper finds that, to a large extent, investment grade rating assignments can be explained by a handful of variables. The results also suggest that efforts by emerging markets to increase the likelihood of an upgrade should focus on debt indicators rather than the other key determinants of investment grade status
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Background and Literature Review; 1. Sovereign Credit Ratings by Agency; 2. Main Studies on the Determinants of Sovereign Ratings; III. Empirical Model Specification; 3. Explanatory Variables and Expected Sign; IV. Data and Estimation Results; 4. Descriptive Statistics of Countries in the Sample and Investment Grade Status; 5. Test of Equality of Means and Medians of Country Characteristics, by Investment Grade Rating; 6. Regression Results
Language
eng
Literary Form
non fiction
Note
"May 2010."
Physical Description
1 online resource (35 p.)
Specific Material Designation
remote
Form Of Item
online
Isbn
9781282845978

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