Determinants of sub-sovereign government ratings in Europe
[EN] The aim of this paper is to identify the determinants of the rating assigned to sub-sovereigns in Germany, Austria, Belgium, France, Italy and Spain, using a total of 92 territorial entities for the 1989-2012 period. Multinomial ordered probit estimation models were estimated for each specifica...
| Autores: | , , |
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| Tipo de recurso: | artículo |
| Fecha de publicación: | 2017 |
| País: | España |
| Institución: | Universitat Politècnica de València (UPV) |
| Repositorio: | RiuNet. Repositorio Institucional de la Universitat Politécnica de Valéncia |
| Idioma: | inglés |
| OAI Identifier: | oai:riunet.upv.es:10251/102699 |
| Acceso en línea: | https://riunet.upv.es/handle/10251/102699 |
| Access Level: | acceso abierto |
| Palabra clave: | Rating Sub-sovereigns Multinomial ordered probit International Financial Markets ECONOMIA APLICADA |
| Sumario: | [EN] The aim of this paper is to identify the determinants of the rating assigned to sub-sovereigns in Germany, Austria, Belgium, France, Italy and Spain, using a total of 92 territorial entities for the 1989-2012 period. Multinomial ordered probit estimation models were estimated for each specification and agency. We conclude that the country s rating is one of the most important determinants of regional governments ratings with a positive influence, as expected, and that the country debt/GDP ratio is a stronger determinant for regions than their own indebtedness with a negative sign. Other relevant variables are population growth rate, unemployment rate, elderly people weight, regional public expenditure weight and size. Additionally, economic variables, country s rating and population growth are more important to Fitch; whereas budget variables and size variables are more relevant to Moody s. Debt variables and elderly people ratio, are more important to S&P. |
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