MACROECONOMIC FACTORS AFFECTING THE COUNTRY CREDIT INVESTIGATIONS: AN APPLICATION ON FRAGILE EIGHT

Year 2017, Volume: 3 Issue: 1, 197 - 205, 30.06.2017

Salih Arslan

https://doi.org/10.17261/Pressacademia.2017.404

Abstract

This study examines the relationship between
macroeconomic variables and country credit ratings determined by credit rating
agencies. In this context, the credit ratings of the countries (Turkey, Brazil,
Chile, Argentina, India, Indonesia, Russia, and S. Africa), which are called
Fragile Sekizli, are ranked by Fitch, one of the three major credit rating
agencies. At the same time, country credit ratings are used as a dependent
variable, independent of macroeconomic factors affecting country credit ratings,
such as GDP per capita, exports, inflation, unemployment, exchange rate, total
reserves, ratio of trade to GDP and ratio of gross savings to GDP It is
discussed. The factors affecting the country credit ratings were examined by
panel data analysis on Fragile Eight, which is also included in Turkey. Country
credit scores and macroeconomic variable figures between 2000 and 2015 were
used in the study.

 

Keywords

Credit Rating Agencies, Fitch, Fragile Eight, Macroeconomic Factors, Panel Data Analysis

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