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Comparison of Country Ratings of Credit Rating Agencies with MOORA Method

Author

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  • Guneren Genc, Elif

    (Istanbul Commerce University)

  • Deniz Basar, Ozlem

    (Istanbul Commerce University)

Abstract

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.

Suggested Citation

  • Guneren Genc, Elif & Deniz Basar, Ozlem, 2019. "Comparison of Country Ratings of Credit Rating Agencies with MOORA Method," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 10(2), pages 391-404, April.
    • Handle: RePEc:ris:buecrj:0397
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    2. R. K. A. Bhalaji & S. Bathrinath & Syed Mithun Ali & K. Koppiahraj, 2024. "Risk assessment in sustainable supply chain: theoretical and managerial implications for circular economy in emerging economies," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 15(10), pages 4966-4981, October.

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    More about this item

    Keywords

    MOORA; Sovereign Credit Rating; Rating Agencies;
    All these keywords.

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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