RATING KRAJU A KURSY WALUTOWE
COUNTRY’S CREDIT RATING AND EXCHANGE RATES

Summary/Abstract: In the paper it has been analysed the impact of the country’s credit rating on the its exchange rates. Therefore, it has been prepared a literature review of literature and put the hypothesis: Changing of the country’s credit rating significantly influence on the changes in foreign exchange rates at the time of their announcement, both the increases and decreases of rating notes. To verify the hypothesis it has been used the event study method. As a dependent variables were used the percentage changes of the exchange rates, while as an independent variables were used the changes of the long-term issuer credit ratings published by S&P and Moody’s for the years 2000–2015. To the research there were used daily data collected from the Thomson Reuters database for European countries.

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