Fitch Ratings sovereign rating bias analysis

The thesis contains in the first chapter a summary of the historical development of rating agencies and ratings as such. It uses various examples to introduce the whole issue of credit rating agencies, in which it tries to cover both the pros and cons. The second chapter is focused purely on Fitch Ratings. It discusses its methodology for assigning sovereign ratings, primarily in the form of a summary of the individual variables considered, and again there is a brief assessment of the pros and cons. The last chapter is an analysis of the development of ratings, GDP and indebtedness of individual countries of choice. There are also proposed two variables for the evaluation of fiscal and monetary policies of individual states, which are evaluated using correlation coefficients. Last but not least, the thesis contains a theoretical proposal for an approach to the regression model, which could reduce the influence of qualitative variables on the entire process of assigning sovereign ratings.