Open AccessWorld ratings: features of formation and impact on the on the country’s economic growth
Author(s) -
Marina Shmahelska
Publication year - 2021
Publication title -
vìsnik socìalʹno-ekonomìčnih doslìdženʹ
Language(s) - English
Resource type - Journals
ISSN - 2313-4569
DOI - 10.33987/vsed.2(77).2021.181-192
Subject(s) - credit rating , credibility , ranking (information retrieval) , rating scale , issuer , portfolio , actuarial science , process (computing) , business , bond credit rating , scale (ratio) , marketing , economics , accounting , finance , computer science , statistics , credit reference , political science , mathematics , artificial intelligence , quantum mechanics , law , operating system , physics , credit risk
The article investigates the ratings formation as a special type of activity that is actively implemented in a market economy. The process of creating a rating system is considered. It is established that the analysis results of economic entities activities are expressed as the results of evaluation in the rating scale. The main difference between the concepts of «rating» and «ranking» is determined, which allows building economic entities according to the ranking, that is, according to one of the indicators. The criteria that underlie the classification of ratings are analyzed. It is noted that in the economic literature, in most cases, it is carried out by rating agencies and companies. It is established that the rating process, as a business, has not only a methodological, but also a certain moral component. The regulatory element of rating agencies and features of their national and international rating scales are studied. A set (system) of national rating scales are determined, which provides the most complete and objective assessment of the issuer’s creditworthiness. The ratings of international rating agencies, which are assigned, usually, on two scales: international and national, are studied. It has been proven that changes in ratings play an important role for transactions with interest rate risks, as information for investors in decision making. The main methods of rating are established, which are largely closed. The leading credit ratings of international agencies, which are used by portfolio investors in decision-making, including country and regional ratings, are named. The main advantages that provide credibility to the ratings are substantiated, such as: the agency’s reputation; the agency has a generally recognized and accessible reporting methodology; differences in approaches to the analysis of rating subjects.