The Extent and Causes of Sovereign Split Ratings

Posted: 22 Oct 2010

See all articles by Rasha Alsakka

Rasha Alsakka

Bangor Business School

Owain Ap Gwilym

Bangor Business School

Date Written: March 2010

Abstract

This unique study employs a rich dataset of ratings from six international agencies to investigate the causes of sovereign split ratings in emerging countries. Three reasons are identified in explaining the relatively high frequency of disagreement across agencies on emerging sovereign ratings. Firstly, rating agencies use different economic factors and different weights on these factors. Secondly, rating agencies disagree to a greater extent about more opaque issuers. Finally, for smaller agencies, issuers in their “home region” tend to be more favoured. The findings should be of interest to a wide range of participants in global credit markets.

Suggested Citation

Alsakka, Rasha and ap Gwilym, Owain, The Extent and Causes of Sovereign Split Ratings (March 2010). Available at SSRN: https://ssrn.com/abstract=1695404

Rasha Alsakka (Contact Author)

Bangor Business School ( email )

Bangor Business School
College Road
Gwynedd LL57 2DG, Wales LL57 2DG
United Kingdom

Owain Ap Gwilym

Bangor Business School ( email )

Bangor Business School
College Road
Gwynedd LL57 2DG, Wales LL57 2DG
United Kingdom

HOME PAGE: http://www.bangor.ac.uk/business/staff/owain_ap_gwilym.php.en

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