Sovereign credit ratings and the fundamentals of the Greek economy
Dimitrios Malliaropulos () and
Petros Migiakis ()
Economic Bulletin, 2020, issue 51, 30
We discuss the factors behind sovereign credit ratings and reproduce their quantitative compo-nent, focusing on the case of Greece. The sovereign credit rating of Greece is still lower than the investment grade threshold. However, some of the fundamentals of the Greek economy are shown to be better than the average of the rating category it belongs to at present (BB) and better even than higher rating categories. Based on the reproduction of the score component of sovereign credit ratings of the three major Credit Rating Agencies, we show that an improvement in the institu-tional factors of the Greek economy to the level of the early 2000s can lead to a significant increase in Greece’s score, thus contributing to an upgrade to the investment grade category.
Keywords: credit ratings; sovereign risk; Greek economy; institutions; governance indicators (search for similar items in EconPapers)
JEL-codes: E44 G24 H63 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bog:econbl:y:2020:i:51:p:43-72
Access Statistics for this article
Economic Bulletin is currently edited by Dimitris Malliaropulos
More articles in Economic Bulletin from Bank of Greece Contact information at EDIRC.
Bibliographic data for series maintained by Christina Tsochatzi ().