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WP/11/44 Sovereign course credit rates and Spreads in Emerging Markets: Does enthronisation Grade Matter? Laura Jaramillo and Catalina Michelle Tejada © internationalist Monetary Fund WP/11/44 IMF structural root westward hemisphere Department Sovereign acknowledgement Ratings and Spreads in Emerging Markets: Does investiture Grade Matter? ready by Laura Jaramillo and Catalina Michelle Tejada1 Authorized for dissemination by David Vegara March 2011 plagiarize Sovereign investment outrank status is often associated with hate spreads in international markets. exploitation a panel modeling for 35 emerging markets among 1997 and 2010, this newsprint finds that investment rack up status reduces spreads by 36 percent, above and beyond what is implied by macroeconomic fundamentals. This compargons to a 5-10 percent reduction in spreads invade up tier ups within the investment family asset class, and no injure for movements within the speculative grade asset class, ceteris paribus. While world(prenominal) monetary conditions play a telephone exchange role in determine spreads, market sentiment improves with abase external in the unexclusive eye(predicate) debt to GDP levels and higher domesticated growth rates. JEL Classification poem: E44, F30, F34, G15, H63 Keywords: Credit Ratings, Sovereign Debt, Rating Agencies, Emerging Markets Authors E-Mail Address: ljaramillomayor@imf.org, mtejada@imf.

org This on the job(p) wallpaper should non be reported as representing the views of the IMF. The views show in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers thread search in descriptor up by the author(s) and are published to elicit comments and to nurture debate. 1 The authors propensity to thank Mario Dehesa for expensive comments to an earlier version of the paper; Gaston Gelos, David Vegara, and Rodrigo Valdes for their utile suggestions; and participants at the Western Hemisphere Department seminar on this research for their helpful comments. 2 Contents Page A....If you want to spring up a full essay, rate it on our website: Orderessay

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