Corporate Rating Models for Emerging Markets

Abstract

Author: Alexander Markovich Karminsky - National Research University "Higher School of Economics". Email: akarminsky@hse.ru

This article evaluates the peculiarities of current corporate ratings systems and addresses specific issues of the development of econometrical rating models for emerging market enterprises. Financial indicators, market-value appraisals, industrial as well as macroeconomic factors of different countries were used as explanatory variables. Ratings of the Standard & Poor’s, Moody’s Investors Service and Fitch Ratings agencies were considered and used for modelling. The predictive power of the econometrical models was examined. A comparison of the methodologies of the three leading agencies was discussed.