Download or read book The Relative Importance of Political and Economic Variables in Creditworthiness Ratings written by International Monetary Fund and published by International Monetary Fund. This book was released on 1998-04-01 with total page 14 pages. Available in PDF, EPUB and Kindle. Book excerpt: This study examines the relative importance of political and economic variables in the determination of a country’s standing in credit ratings provided by commercial rating agencies. It finds that creditworthiness appears to be determined primarily by economic variables. While including political events can improve the explanatory power of the regressions, the exclusion of political variables does not bias the parameter estimates for the effects of economic variables.