Afonso, AntónioGomes, PedroRother, Philipp2022-10-042022-10-042011Afonso, António; Pedro Gomes and Philipp Rother. (2011). "Short‐and long‐run determinants of sovereign debt credit ratings". International Journal of Finance & Economics, Vol. 16, No. 1: pp. 1-15.http://hdl.handle.net/10400.5/25660We study the determinants of sovereign debt ratings from the three main rating agencies, for the period 1995–2005. Using linear and ordered response models, we employ a specification that allows us to distinguish between short- and long-run effects, on a country’s rating, of macroeconomic and fiscal variables. Changes in GDP per capita, GDP growth, government debt, and government balance have a short-run impact on a country’s credit rating, while government effectiveness, external debt, foreign reserves, and default history are important long-run determinants.engCredit RatingsSovereign DebtRating AgenciesRandom Effects Ordered Probitjournal article10.1002/ijfe.416