A panel ordered response model for sovereign credit ratings in Africa

Sovereign credit ratings measure a country's ability to meet its financial obligations. It is imperative to consider the specific determinants of ratings as they influence the decisions of investors and other role players. The main focus of this research is to investigate whether the determinants identified in literature are significant for African sovereigns as well. The determinants of sovereign credit ratings will be identified by making use of panel and ordered response models. Data of 27 African countries are included over a period of five years. Some differences occur between findings from literature which mainly focuses on developed and developing countries, and the findings of this study, focusing on Africa.