01890cas a2200265 a 4500 AALejournalIMF009249 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451866391 1018-5941 BD-DhAAL BD-DhAAL Borensztein, Eduardo. Sovereign Ceilings 'Lite'? : The Impact of Sovereign Ratings on Corporate Ratings in Emerging Market Economies / Eduardo Borensztein, Patricio Valenzuela, Kevin Cowan. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Although credit rating agencies have gradually moved away from a policy of never rating a private borrower above the sovereign (the "sovereign ceiling") it appears that sovereign ratings remain a significant determinant of the credit rating assigned to corporations. We examine this link using data for advanced and emerging economies over the past decade and conclude that the sovereign ratings have a significant and robust effect on private ratings even after controlling for country specific macroeconomic conditions and firm-level performance indicators. This suggests that public debt management affects the private sector through a channel that had not been previously recognized. Mode of access: Internet Cowan, Kevin. Valenzuela, Patricio. IMF Working Papers; Working Paper ; No. 2007/075 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/075/001.2007.issue-075-en.xml IMF e-Library