Abstract
This paper examines whether the credit ratings assigned by the lenders can be explained using a set of explanatory variables selected from the willingness of LDC borrowers to repay their debt service obligations. The results indicate that first, the credit ratings provide a reasonable measure of borrower's creditworthiness and second, the set of the explanatory variables included in the study is significant in explaining variations in the credit ratings. Furthermore, inclusion of dummy variables for geographical location of borrowers, degree of indebtedness, and absolute size of debt suggests that there may be a significant group contagion in assigning credit ratings.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
