The Influence of Internationalization on Credit Ratings: an Analysis of Brazilian Companies
DOI:
https://doi.org/10.5007/2175-8077.2023.e70312Keywords:
Credit rating, risk, internationalization, ordered choice modelsAbstract
The objective of the present study was to analyze the relationship between internationalization and credit rating of Brazilian companies. The data were obtained from a banking institution that periodically rates its customers according to risk. An ordered probit model was constructed. The constructed model used the risk rating as the dependent variable and financial variables were used as predictors. The variable of interest, internationalization, measured by exports and imports, was statistically significant, indicating that companies with international activities are more likely to have a better risk rating, that is, they pose less risk to banking institutions in relation to obtaining bank credit.
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