INVESTIGATING THE DETERMINANTS OF LONG-RUN SOVEREIGN RATING

The significance of sovereign rating for local and international investors is essential because in recent period many countries had problems concerning the payment of public loans. In most European Union countries government debt to GDP ratio exceeds the Maastricht ceiling and investors may be cautious at sovereign rating modifying. This paper focuses on long-run sovereign rating assigned by Standard & Poor’s for European Union countries. We will use the regression analysis in order to investigate quantitative and qualitative determinants of long-run sovereign rating.