02151cas a2200325 a 4500 AALejournalIMF019486 230101c9999 xx r poo 0 0eng d 5.00 USD 9781498325059 1018-5941 BD-DhAAL BD-DhAAL Hadzi-Vaskov, Metodij. The Nonlinear Relationship Between Public Debt and Sovereign Credit Ratings / Metodij Hadzi-Vaskov, Luca Ricci. Washington, D.C. : International Monetary Fund, 2019. 1 online resource (37 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 This study investigates the nonlinear relationship between public debt and sovereign credit ratings, using a wide sample of over one hundred advanced, emerging, and developing economies. It finds that: i) higher public debt lowers the probability of being placed in a higher rating category; ii) the negative debt-ratings relationship is nonlinear and depends on the rating grade itself; and iii) the identified nonlinearity explains the differential impact of debt on ratings in advanced economies versus in emerging markets and developing economies. These results hold for both gross debt and net debt, and are robust to alternative dependent variable definitions, analytical techniques, and empirical specifications. These findings underscore the potential for fiscal consolidation in helping countries achieve a better credit rating. Mode of access: Internet Debt-Ratings Relationship imf GDP Growth imf LIG Rating imf Rating Category imf WP imf United States imf Ricci, Luca. IMF Working Papers; Working Paper ; No. 2019/162 Full text available on IMF http://elibrary.imf.org/view/journals/001/2019/162/001.2019.issue-162-en.xml IMF e-Library