Banks’ Credit Ratings – Domestic and Foreign Notes
DOI:
https://doi.org/10.15678/AOC.2018.1806Keywords:
credit rating, default risk, financial indicators, banking sectorAbstract
The aim of the paper is to analyse the differences between foreign and domestic notes given to banks by credit rating agencies. Following a literature review, the following hypothesis was proposed: Financial indicators have a stronger impact on the credit ratings of domestic rather than of foreign banks. The hypothesis was verified using panel ordered probit models. The analysis was based on European banks’ long-term issuer credit ratings given by S&P, Fitch and Moody between 2000 and 2015.
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