Artículos
Vol. 6 No. 1 (2023): REVISTA FAECO SAPIENS
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Sovereign credit ratings are very important for any national and international economy. While a sovereign credit rating upgrade can encourage international investors and boost a country’s Gross Domestic Product (GDP), a downgrade can have devastating effects for an already weak economy. On the other hand, sovereign debts can have important economic effects and it is related, to some degree, to a country’s GDP. Consequently, there is a need to study how sovereign credit ratings can moderate the relationship between GDP and sovereign debts. To study sovereign credit rating, Moody’s and Standard and Poor’s, as two of the most prestigious credit rating agencies, were taken into consideration. Panama’s public data from 2000 to 2019 related to GDP and sovereign debt was analyzed. Two moderation analyses were performed to test two hypotheses by using SPSS AMOS Version 27.0. The results in the empirical research demonstrated that sovereign credit rating moderates the relation between the two variables. Moody’s and Standard and Poor’s sovereign credit rating demonstrated to be significant in both cases.
Este obra está bajo una licencia de Creative Commons Reconocimiento-NoComercial-CompartirIgual 4.0 Internacional.
