A New Approach to Reconstruction of Moody’s Rating System for Countries Investment Risk Rating

Nima Mirzaei and Béla Vizvári

Journal of Empirical Economics, 2015, vol. 4, issue 3, 167-182

Abstract: This study examines the relative importance of economic, environmental, educational, and infrastructure factors in determining countries risk rating. In the first step of the analysis, the economic determinants of the country were collected from World Bank (WB) and International Monetary Fund (IMF) databases. Although the country rating is subjective from time to time and it depends on many different factors (economic, environmental, educational, and infrastructure), changes in economic fundamentals are the main aspects which affect in country risk rating. This study does some empirical analysis of importance of economic and political factors and it does not stand for exact solution for classification of countries, rather than the study tries to analyze the relative importance of factors in the determination of country risk. It also provides an approximate rating method, which uses only data available in World Bank and International Monetary Fund and everybody, can evaluate easily. Also all collected data is based on information in year 2010.

Keywords: Country Credit Rating; Logical Analysis of Data; Moody’s Rating Scale. (search for similar items in EconPapers)
Date: 2015
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Persistent link: https://EconPapers.repec.org/RePEc:rss:jnljee:v4i3p4

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