The impact of financial indicators on credit ratings of banks from eurozone Cover Image

Wpływ wskaźników finansowych na ratingi kredytowe banków z krajów strefy euro
The impact of financial indicators on credit ratings of banks from eurozone

Author(s): Patrycja Chodnicka-Jaworska
Subject(s): Financial Markets
Published by: Wydawnictwo Uniwersytetu Ekonomicznego we Wrocławiu
Keywords: credit rating; profitability; assets quality; credit risk

Summary/Abstract: The aim of the article is to analyze the determinants affecting the banks’ credit ratings from the Eurozone. Therefore, a literature review was made on the basis of which a hypothesis was put: asset quality, profitability, liquidity and capital adequacy indicators have statistically significant effect on the banks’ credit ratings. To verify the hypothesis there were used logit panel data models. For the research information was collected on the publication of the long-term issuer banks’ credit ratings in 1998-2015 period of time. Credit ratings were decomposed linearly on the numeric varibales. Financial indicators were used as independent variables. The study used quarterly data. Necessary data were obtained from the Thomson Reuters database.

  • Issue Year: 2016
  • Issue No: 3 (28)
  • Page Range: 27-37
  • Page Count: 11
  • Language: Polish