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Företags kreditbetyg - Fallande i USA, samma för Europa?

Letzén, Linn LU ; Udd, Victoria LU and Ulmestål, Mikaela LU (2023) FEKH89 20222
Department of Business Administration
Abstract
Title: Corporate credit ratings - Declining in the US, same for Europe?
Seminar date: 2023-01-11
Course: FEKH89, ​​Degree Project Undergraduate level in Corporate Finance, 15 ECTS
Authors: Linn Letzén, Victoria Udd, Mikaela Ulmestål
Advisor: Anamaria Cociorva
Key words: credit rating, credit rating agencies, conservatism, Fitch Ratings, Europe
Research question: Has Fitch become more conservative in their corporate credit rating in Europe?
Purpose: Examine if the downward trend in credit ratings also applies for Fitch and companies in Europe, and whether it can be explained by conservatism
Methodology: Quantitative method with data collected from primary and secondary sources. A multiple regression analysis is used to examine the... (More)
Title: Corporate credit ratings - Declining in the US, same for Europe?
Seminar date: 2023-01-11
Course: FEKH89, ​​Degree Project Undergraduate level in Corporate Finance, 15 ECTS
Authors: Linn Letzén, Victoria Udd, Mikaela Ulmestål
Advisor: Anamaria Cociorva
Key words: credit rating, credit rating agencies, conservatism, Fitch Ratings, Europe
Research question: Has Fitch become more conservative in their corporate credit rating in Europe?
Purpose: Examine if the downward trend in credit ratings also applies for Fitch and companies in Europe, and whether it can be explained by conservatism
Methodology: Quantitative method with data collected from primary and secondary sources. A multiple regression analysis is used to examine the relationship
Theoretical perspectives: Historical research examines the downward trend in corporate credit ratings and investigates conservatism as an explanation. This essay intends to solely analyze European companies which distinguishes this essay from other historical studies mainly focused on the American market.
Results: Credit ratings issued by Fitch for companies in Europe have followed the downward trend experienced by S&P and Moody’s on the American market. The main regression shows a significant relationship between credit ratings and the control variables, but the degree of explanation is low.
Conclusions: The alternative hypothesis that changes have occurred in conservatism year 2011 has been accepted. Furthermore, our findings indicate that Fitch has become more conservative when assigning credit rating scores to European companies. (Less)
Abstract (Swedish)
Titel: Företags kreditbetyg - Fallande i USA, samma för Europa?
Seminariedatum: 2023-01-11
Kurs: FEKH89, Examensarbete kandidatnivå i finansiering, 15 högskolepoäng
Författare: Linn Letzén, Victoria Udd, Mikaela Ulmestål
Handledare: Anamaria Cociorva
Nyckelord: kreditbetyg, kreditinstitut, konservatism, Fitch Ratings, Europa
Forskningsfråga: Har Fitch blivit mer konservativa i sin kreditbedömning av företag i Europa?
Syfte: Undersöka om den nedåtgående trenden gällande kreditbetyg också gäller Fitch och företag i Europa samt om den kan förklaras av konservatism
Metod: Kvantitativ metod med datainsamling från primär- och sekundärkällor. Multipel regressionsanalys används för att undersöka ett samband.
Teoretiska perspektiv: Den... (More)
Titel: Företags kreditbetyg - Fallande i USA, samma för Europa?
Seminariedatum: 2023-01-11
Kurs: FEKH89, Examensarbete kandidatnivå i finansiering, 15 högskolepoäng
Författare: Linn Letzén, Victoria Udd, Mikaela Ulmestål
Handledare: Anamaria Cociorva
Nyckelord: kreditbetyg, kreditinstitut, konservatism, Fitch Ratings, Europa
Forskningsfråga: Har Fitch blivit mer konservativa i sin kreditbedömning av företag i Europa?
Syfte: Undersöka om den nedåtgående trenden gällande kreditbetyg också gäller Fitch och företag i Europa samt om den kan förklaras av konservatism
Metod: Kvantitativ metod med datainsamling från primär- och sekundärkällor. Multipel regressionsanalys används för att undersöka ett samband.
Teoretiska perspektiv: Den tidigare forskningen granskar den nedåtgående trenden för företags kreditbetyg och utforskar konservatism som förklaring. Denna uppsats ämnar att analysera enbart europeiska företag vilket särskiljer sig från andra tidigare studier som främst forskat på den amerikanska marknaden.
Resultat: Kreditbetygen utgivna av Fitch för företag i Europa har följt den nedåtgående trend S&P och Moody’s genomgått på den amerikanska marknaden. Huvudregressionen visar ett signifikant samband mellan kreditbetyg och kontrollvariablerna, däremot är förklaringsgraden låg.
Slutsats: Mothypotesen att det finns ändringar i konservatism sedan år 2011 har accepterats. Vidare indikerar våra resultat på att Fitch har blivit mer konservativa vid tilldelning av kreditbetyg till europeiska företag. (Less)
Please use this url to cite or link to this publication:
author
Letzén, Linn LU ; Udd, Victoria LU and Ulmestål, Mikaela LU
supervisor
organization
course
FEKH89 20222
year
type
M2 - Bachelor Degree
subject
language
Swedish
id
9109331
date added to LUP
2023-02-01 14:21:51
date last changed
2023-02-01 14:21:51
@misc{9109331,
  abstract     = {{Title: Corporate credit ratings - Declining in the US, same for Europe?
Seminar date: 2023-01-11
Course: FEKH89, ​​Degree Project Undergraduate level in Corporate Finance, 15 ECTS
Authors: Linn Letzén, Victoria Udd, Mikaela Ulmestål
Advisor: Anamaria Cociorva
Key words: credit rating, credit rating agencies, conservatism, Fitch Ratings, Europe
Research question: Has Fitch become more conservative in their corporate credit rating in Europe?
Purpose: Examine if the downward trend in credit ratings also applies for Fitch and companies in Europe, and whether it can be explained by conservatism
Methodology: Quantitative method with data collected from primary and secondary sources. A multiple regression analysis is used to examine the relationship
Theoretical perspectives: Historical research examines the downward trend in corporate credit ratings and investigates conservatism as an explanation. This essay intends to solely analyze European companies which distinguishes this essay from other historical studies mainly focused on the American market.
Results: Credit ratings issued by Fitch for companies in Europe have followed the downward trend experienced by S&P and Moody’s on the American market. The main regression shows a significant relationship between credit ratings and the control variables, but the degree of explanation is low.
Conclusions: The alternative hypothesis that changes have occurred in conservatism year 2011 has been accepted. Furthermore, our findings indicate that Fitch has become more conservative when assigning credit rating scores to European companies.}},
  author       = {{Letzén, Linn and Udd, Victoria and Ulmestål, Mikaela}},
  language     = {{swe}},
  note         = {{Student Paper}},
  title        = {{Företags kreditbetyg - Fallande i USA, samma för Europa?}},
  year         = {{2023}},
}