DETERMINANTS OF GREECE SOVEREIGN CREDIT RATING: 1980 - 2009

Samir Aguenaou
Jawad Abrache
Al Akhawayn University in Ifrane
ABSTRACT
Sovereign credit ratings are evaluations made by credit rating agencies of the risk of
credit default of countries, and have important implications on foreign investment and access to
financing. This study investigates Greece’s sovereign credit rating over a period of 30 years.
Following the literature on the subject, five potential determinants of the country’s credit rating
are identified. An OLS regression analysis confirms the external debt and to a lesser extent the
current account balance as significant explanatory variables of the rating.