SavedAdd your journal

Journals / Business and Economics Research Journal / 2019 / Cilt: 10 - Sayı: 2

Comparison of Country Ratings of Credit Rating Agencies with MOORA Method

Elif GÜNEREN GENÇ
ÖZLEM DENİZ BAŞAR
Pages
391–404
DOI
—
🏛️Bibliographic metadata and full text access for this article are provided via DergiPark.
DergiPark Record ↗
✨

AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

Moody’s is followed by Standard and Poor’s, and the credit rating agencies that make the most pessimistic estimates is observed to be Fitch.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:The three main credit rating agencies, Standard and Poor’s, Moody’s and Fitch, use a combination of economic, social and political factors to determine the capacity and current and future debt obligation of countries.
📊
Key Findings & Data:The second one is the determination of how optimistic or pessimistic country-based results the three main credit rating agencies yield according to their estimates by macroeconomic variables.
💡
Conclusion & Impact:Moody’s is followed by Standard and Poor’s, and the credit rating agencies that make the most pessimistic estimates is observed to be Fitch.
🔬Design:Research Article
📍Scope:Comprehensive Sample
⚙️Variables:Domain Parameters

Özet

The three main credit rating agencies, Standard and Poor’s, Moody’s and Fitch, use a combination of economic, social and political factors to determine the capacity and current and future debt obligation of countries. This study contributes to literature in two ways. The first one is comparison of results obtained by rating countries on various macroeconomic variables using credit scores given by the three main credit rating agencies and using the MOORA method. The second one is the determination of how optimistic or pessimistic country-based results the three main credit rating agencies yield according to their estimates by macroeconomic variables. Among the three rating agencies, Moody’s make the most optimistic estimates in terms of its rating of countries. Moody’s is followed by Standard and Poor’s, and the credit rating agencies that make the most pessimistic estimates is observed to be Fitch.

🔖

Cite This Article

GENÇ, E. G., BAŞAR, Ö. D. (2019). Comparison of Country Ratings of Credit Rating Agencies with MOORA Method. Business and Economics Research Journal, Cilt: 10 - Sayı: 2, 391–404. https://ajindex.com/articles/144767

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (14)

  1. Abad, P., & Robles, M. D. (2014). Credit rating agencies and idiosyncratic risk: Is there a linkage? Evidence from the Spanish market. International Review of Economics and Finance, 33, 152-171.
  2. Arezki, R., Candelon, B., & Amadou, N.R. (2011). Sovereign rating news and financial markets spillovers: Evidence from the European debt. IMF Working Paper, 11(68), 1-27.
  3. Baghai, R., & Becker, B. (2018, January). Non-rating revenue and conflicts of interest. Journal of Financial Economics, 127(1), 94-112.
  4. Baum, A., Checherita-Westphal, C., & Rother. (2012). Debt and growth new evidence for the Euro area. European Central Bank Working Papers, 1-20.
  5. Brauers, W., & Zavadkas, E. (2012). Robustness of MULTIMOORA: A method for multi-objective optimization. Informatica, 23(1), 1-25.
  6. Brauers, W., & Zavadskas, E. (2006). The MOORA method and its application to privatization in a transition economy. Control and Cybernetics, 35(2), 445-469.
  7. Bodenstedt, M., Rösch, D., & Scheule, H. (2013). The path to impairment: Do credit-rating agencies anticipate default events of structured finance transactions? European Journal of Finance, 19(9), 841-860.
  8. Bozic, V., & Magazzino, C. (2013). Credit rating agencies: The importance of fundamentals in the assessment of sovereign ratings. Economic Analysis and Policy, 43(2), 157-176.
  9. Ceyhan, I., & Demirci, F. (2017). Measurement of financial performance with MULTIMOORA Method: A study at leasing companies. Bartin University Journal of Faculty of Economics & Administrative Sciences, 8(15), 277-295.
  10. Chand, M., Bhatia, N., & Singh, R. (2018). ANP-MOORA-Based approach for the analysis of selected issues of green supply chain management. Benchmarking An International Journal, 25(2), 642-659.
  11. Ege, I., & Yaman, S. (2018). The effects of financial performance that measured by TOPSIS and MOORA methods on stock returns: A panel data application on bist cement-concrete companies. INJOSOS Al-Farabi International Journal on Social Sciences, 2(1), 75-96.
  12. Erdem, O., & Varli, Y. (2014, September). Understanding the sovereign credit ratings of emerging markets. Emerging Markets Review, 20, 42-57.
  13. Ersoz, F., & Atav, A. (2011). MOORA Method in an objective multi-criteria decisions problems. YAEM 2011 31st National Congress of Operations Research and Industrial Engineering (p. 78-87). Sakarya: Sakarya University. Freitag, L. (2015). Procyclicality and path dependence of sovereign credit ratings: The example of Europe. Economic Notes, 44(2), 309-332.
  14. Genc, A., Avci