This paper provides new evidence on the determinants of foreign currency sovereign ratings. It examines the systematic differences between credit rating agencies regarding both the factors included in the sovereign rating process and the weightings attached to these factors, as well as the...

We examine the statistical determinants of transfer risk using probit estimation and an estensive data set of over 300 sovereign ratings given by the leading rating agencies between 1992-1997.

This paper presents the first systematic analysis of the determinants of local currency sovereign ratings and uses ordered probit estimation. We find no signifiant quantitative impact for the best theoretical indicators of local currency creditworthiness, the fiscal balance and the rate of...