We model EU countries' bank ratings using financial variables and allowing for intercept and slope heterogeneity. Our … aim is to assess whether “old” and “new” EU countries are rated differently and to determine whether “new” ones are … intercepts) are a crucial determinant of ratings. Whilst “new” EU countries typically have lower ratings than “old” ones, after …

within the EU and how this changed between 1980 and 2008. We present several novel empirical regularities that paint a … heterogeneity within member states themselves, or in well functioning federations such as the US, cultural diversity across EU …