scholarly journals Determinants of the Distance between Sovereign Credit Ratings and Sub-Sovereign Bond Ratings: Evidence from Emerging Markets and Developing Economies

10.1596/29117 ◽  
2017 ◽  
Author(s):  
Sanket Mohapatra ◽  
Manabu Nose ◽  
Dilip Ratha
Keyword(s):  
Emerging Markets ◽  
Developing Economies ◽  
Credit Ratings ◽  
Bond Ratings ◽  
Sovereign Credit ◽  
Sovereign Bond ◽  
Sovereign Credit Ratings

scholarly journals An analysis of Granger causality between sovereign credit rating and economic growth in Sub-Saharan Africa

2020 ◽  
Vol 17 (4) ◽  
pp. 85-93
Author(s):  
Misheck Mutize ◽  
Virimai V. Mugobo
Keyword(s):  
Economic Growth ◽  
Granger Causality ◽  
Foreign Currency ◽  
Credit Rating ◽  
Developing Economies ◽  
Credit Ratings ◽  
Sub Saharan Africa ◽  
Sovereign Credit ◽  
Sovereign Credit Ratings ◽  
Sub Saharan

Interest in the relationship between credit rating and economic growth is growing as emerging economies increasingly integrate into international financial markets. Without credit ratings, developing economies would not have been able to successfully issue their sovereign bonds to support economic growth. Therefore, this paper examines a causality relationship between Standard & Poor’s long-term foreign currency sovereign credit ratings and economic growth in 19 Sub-Saharan countries over the period from 2003 to 2018. The results of the Granger causality tests show a unidirectional causality from sovereign credit ratings to economic growth, not vice versa. This implies that economic growth is not significant in determining sovereign credit ratings. It can thus be concluded from these findings that sovereign credit ratings are proactive actions by rating agencies that are relevant in determining future economic growth. Thus, investors benefit from utilizing credit ratings to prevent inherent information asymmetry in fundamental economic factors. Therefore, it is important for policy makers to pay attention to sovereign credit ratings when formulating macroeconomic policies.

Sovereign Credit Ratings in Developing Economies: New Empirical Assessment

2016 ◽  
Vol 21 (4) ◽  
pp. 382-397 ◽  
Author(s):  
Gabriel Caldas Montes ◽  
Diego S. P. de Oliveira ◽  
Helder Ferreira de Mendonça
Keyword(s):  
Developing Economies ◽  
Credit Ratings ◽  
Empirical Assessment ◽  
Sovereign Credit ◽  
Sovereign Credit Ratings
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