A Panel Ordered Response Model for Sovereign Credit Ratings in Africa

Marinda Pretorius and Ilse Botha

The African Finance Journal, 2016, vol. 18, issue 1, 20-33

Abstract: Sovereign credit ratings measure a country’s ability to meet its financial obligations. It is imperative to consider the specific determinants of ratings as they influence the decisions of investors and other role players. The main focus of this research is to investigate whether the determinants identified in literature are significant for African sovereigns as well. The determinants of sovereign credit ratings will be identified by making use of panel and ordered response models. Data of 27 African countries are included over a period of five years. Some differences occur between findings from literature which mainly focuses on developed and developing countries, and the findings of this study, focusing on Africa.

Keywords: Sovereign credit ratings; panel data; ordered response model; rating agencies (search for similar items in EconPapers)
JEL-codes: C23 E51 (search for similar items in EconPapers)
Date: 2016
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://www.journals.co.za/ej/ejour_finj.html (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:afj:journl:v:18:y:2016:i:1:p:20-33

Access Statistics for this article

More articles in The African Finance Journal from Africagrowth Institute Contact information at EDIRC.
Bibliographic data for series maintained by Kirk De Doncker ().