Скачать или смотреть The Hidden Force Shaping Your Company's Debt: International Credit Ratings Explained

The Hidden Force Shaping Your Company's Debt: International Credit Ratings Explained

How do decisions made in a boardroom in New York or London affect a private company's ability to borrow in Lisbon or Madrid? This deep dive explores the powerful link between international credit rating agencies, political risk, and corporate financial decisions.

This video summarizes a crucial study analyzing Portuguese and Spanish private companies from 2003 to 2015—a period covering the global financial crisis (sub-prime crisis) and the European sovereign debt crisis. We break down how sovereign credit downgrades directly influence how businesses manage their debt and leverage.

Key Takeaways You'll Learn:
How international credit rating agencies (like Moody's, S&P, Fitch) assess a country's political and economic stability.
Why a national sovereign downgrade causes private companies to reduce their debt levels and avoid financial vulnerability.
The specific impact of profitability, company size, and sales on leverage during times of crisis.
What the "Critical Political Risk (CPR)" dummy variable is and how it measures sudden spikes in risk.
Why the traditional view that "capital structure doesn't affect company value" is challenged by political instability.
How companies in the Iberian market (Portugal & Spain) adjusted their financing strategies in response to political shocks.
This research is essential for business leaders, financial analysts, investors, and economics students to understand the real-world implications of geopolitics on corporate finance and investment strategy.

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Disclaimer: This video is for educational and informational purposes only and does not constitute financial advice.

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Impact of International Rating Agencies in Iberian Private Companies

Layman Abstract :
This study explores how international credit rating agencies influence the borrowing decisions of companies in Portugal and Spain. When these agencies downgrade a country due to political risk, businesses become cautious and reduce their debt to stay financially safe. The findings highlight how closely political stability and credit ratings affect company financing strategies.

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