This study examines the proposition that political business cycle theory is relevant to private foreign lenders to developing countries. We find that: credit rating agencies downgrade developing country ratings more often in election years, and do so by approximately one rating level; bond spreads are higher in the 60 days before an election compared to spreads in the 60 days after an election;...

This study examines the proposition that political business cycle theory is relevant to private foreign lenders to developing countries. We find that: credit rating agencies downgrade developing country ratings more often in election years, and do so by approximately one rating level; bond spreads are higher in the 60 days before an election compared to spreads in the 60 days after an election;...

This paper analyzes credit rating agencies’ actions in Brazilian presidential transitions the light of what is understood as financialization. It argues that agencies, from their position international financial system, express and promote financialization process during transitions. To end, they resort to forms political activism favor orthodox agenda defended by markets enthusiasts. The metho...