The Effects of Credit Rating Announcements on Shares: The Case of Turkey

Torun R., Erkılıç A. Y.

International Conference on Digital Business, Management and Economics, Mersin, Turkey, 9 - 11 September 2022, pp.126-127

  • Publication Type: Conference Paper / Summary Text
  • City: Mersin
  • Country: Turkey
  • Page Numbers: pp.126-127
  • Abdullah Gül University Affiliated: Yes


Sovereign credit ratings are issued by several independent credit rating agencies. These credit ratings are main signs of the credibility of the countries. These credit ratings both affect the goverments’ access to internatioNAl capital markets as well as other borrowers’ access in the same country. However, both the credit rating agencies and the sovereign ratings they issue have been exposed to increasing criticism especially after the global crisis of the year 2008. Likewise, the sovereign ratings given for Turkey have been a current discussion topic. The aim of the study is to reveal the effects of the credit rating announcements on share price. In this content, the announced sovereign ratings for Turkey by Standard&Poor’s, Fitch and Moody’s and the main indicators regarding share prices of the firms whose shares are traded on BIST100 were used under the scope of event study. This paper contributes the existing literature by documenting how much sovereign rating changes affect a domestic stock market.


Keywords: Credit Rating Announcement, Sovereign Rating, Event Study, Share Price, Turkey