VISEGRAD FOUR COUNTRIES AND THEIR SOVEREIGN CREDIT RATING
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We study the sovereign credit rating determinants of Visegrad Four countries in the period 1993 – 2012. The ratings come from four major credit rating agencies – Moody’s, S&P, Fitch and R&I. We use linear model with fixed effects. Besides the economic variables inflation, unemployment, broad money to GDP, import to export, openness of the economy, government gross debt, primary balance and size of the government we found out that voice & accountability score of Worldwide Governance Indicators is suitable representative of socio-political situation. Both EU and EMU membership provide additional information to other explanatory variables. The government finance is the most influential determinant in the researched dataset. Unlike in other academic papers, the growth of GDP was not significant variable to explain the sovereign ratings.
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