| Abstract [eng] |
This Master's thesis analyzes and evaluation of the credit ratings and countries’ economic indicators. The main purpose of this work is to understand the interdependence aspects of credit ratings and countries' economic indicators and the impact of policy decisions and COVID-19 pandemic on these issuer indicators. The work consists of three main parts: literature analyses, the empirical research methodology and the research with received results. Also, there are presented conclusion and recommendations for the credit ratings agencies market. First part of this working paper is analyzing the scientific literature and documents of the EU institutions, which discusses the importance of ratings, the credit ratings agencies industry and provides some data on the specific structure, ratings calculation methods along with some important historical background of the three dominating credit ratings agencies – Moody’s, Standard & Poor’s and Fitch Ratings. All of them are established in the United States and so - called „Big Three“. Also, it presents the problems, regulation and control of the agencies. In the second part, there is providing the methodology of empirical research is presented, where the structured stages, methods, aim of the research conducted in the third part of this work are formed, and the limitations of the research are distinguished. In the third part, there are submitted results of six comparing countries, their ratings, influential factors: government budget to GDP, government debt to GDP, inflation rate, long term interest rate. The data of the research were statistically processed with the MC Excel program. The performed research revealed that a higher credit rating allows issuer to borrow at a lower interest rate and plan lower debt costs for debt management. The interaction and significance level of credit ratings and other economic indicators in the counties being comparative varies due to different political and economic aspects, country size and progress. However, credit rating agencies are facing sharp criticism, and their activities are not only constantly monitored, but are also being sought to be more tightly regulated and controlled. The aim is to counterbalance and compete with the „Big Three“ by setting up regional agencies. |
