The Influence of Internationalization on Credit Ratings: an Analysis of Brazilian Companies

Abstract

We investigate the relationship between internationalization and the credit rating of Brazilian companies. The data was obtained from a banking institution that periodically rates its account holders. An econometric analysis was conducted using ordered choice models. The constructed model used risk rating as the dependent variable and financial variables as independent variables. The variable of interest, internationalization, measured by exports or imports, was found to be statistically significant, and it is observed that companies with international activity are more likely to be better classified in relation to risk, that is, they pose less risk to a banking institution.

Keywords

• Classificação de crédito
• risco
• internacionalização
• modelo de escolhas ordenadas