Eşiği Aşınca: Kredi Notunun “Yatırım Yapılabilir” Seviyeye Yükselmesinin Etkileri (Beyond the Threshold: The Impact of Credit Rating Upgrades to “Investment” Level)

Eşiği Aşınca: Kredi Notunun “Yatırım Yapılabilir” Seviyeye Yükselmesinin Etkileri (Beyond the Threshold: The Impact of Credit Rating Upgrades to “Investment” Level)

Title : Beyond the Threshold: The Impact of Credit Rating Upgrades to “Investment” Level
Number : 11/23
Author(s) : İbrahim Burak Kanlı, Yasemin Barlas
Language : Turkish
Date : November 2011
Abstract : This paper focuses on emerging countries whose credit ratings are upgraded to “investment” level since 1990 and analyses the trends in selected financial and macroeconomic indicators before and after the upgrade decision. The analysis reveals that access to foreign capital gets easier after being upgraded to investment level through both portfolio and credit channels; however, a particular trend cannot be depicted for foreign direct investment. While the cost of external debt decreases after the upgrade, the average maturity of new debt does not portray a significant change. As external financing conditions improve, the formerly decreasing external debt follows an upward trend and current account worsens. The surge in foreign credit reflects on domestic credit market, as domestic credit to private sector accelerates and cost of domestic lending falls. Finally, despite higher post-upgrade absolute growth rates, relative growth performances in pre- and post-upgrade periods do not differ significantly.
Keywords : Credit rating, Investment grade, Emerging countries
JEL Codes : E44; F34; G15

 

Eşiği Aşınca: Kredi Notunun “Yatırım Yapılabilir” Seviyeye Yükselmesinin Etkileri (Beyond the Threshold: The Impact of Credit Rating Upgrades to “Investment” Level)
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