The name is absent



Figure 3 - Prediction for Moody’s

___________________________________3a - OLS____________________________

3b - Random effects estimation without country specific error

Actual

Aaa Aa1 Aa2 Aa3 A1 A2 A3 Baal Baa2 Baa3 Ba1 Ba2 Ba3 B1 B2 B3 ≤Caa1

Actual

Aaa Aa1 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 Ba1 Ba2 Ba3 B1 B2 B3 ≤Caa1

Aaa

Aa1

Aa2

Aa3

A1

A2

A3

φ Baal

⅛ Baa2
φ

∩~ Baa3

Ba1

Ba2

Ba3

B1

B2

B3
≤Caa1

86    6    0    0  0

50    6   3    6  0  0

11   11   22    2 2   0   4

1    3    3    0  0   2   3      0

0    1     6   5   3   1       3     0

004 0 0   0  0  0

0 2   2   2      1     0     0    0

082 11  5  200

0  8     9    13    10    7    0    0

1      0     5    19   13    3    0   0

0     3    14    8    4    1   4 0

0    12   10    3    6   5   0   1

0     1   11     8   8   3   1        0

0    2    3   7  13   5       1

0    2   2   5   7       5

0   4   6   3       7

______________________________________________0  13   11

Aaa

Aa1

Aa2

Aa3

A1

A2

A3

φ Baa1

⅛ Baa2
φ

∩~ Baa3

Ba1

Ba2

Ba3

B1

B2

B3
≤Caa1

86   6    1    0  0

40   8    3    6  0   0

16   8   21    2  2   0   4

5   0    3    0  4   3   2     1

1    4    1     6  0   2   2     2     0

0005 1 2  0  0  0

0023 0 5  0  00

0  0   6   1     6     5      1    2    0

0   0   9     9    13    12   5    1    0

0   1     1      5     8  13    3    0   0

0  0  3 27 9 5140

0     0     8    9    6    7   8   1   1

0  104 4 753  0

0   1    4    7   5   6   6       0

0    0    1   6   9   3       6

0    0   0   5   4      10

___________________________________________________________________0   0   2   3       8

_____________________________________3c - Ordered Probit____________________________

___________________________3d - Random effects ordered Probit____________________

Actual

Aaa Aa1 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 Ba1 Ba2 Ba3 B1 B2 B3 ≤Caa1

Actual

Aaa Aa1 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 Ba1 Ba2 Ba3 B1 B2 B3 ≤Caa1

Aaa

Aa1

Aa2

Aa3

A1

A2

A3

φ Baal

⅛ Baa2
φ

∩~ Baa3

Ba1

Ba2

Ba3

B1

B2

B3
≤Caa1

139   15    2    6 0  0

3  1 14  110 4

36 11 1100  0

321 0 220  0  0

2  11 4 14   1   0   0

054 2 1  2  0  00

0   1   4 1      2     0      0    0    0

062 9 5 4100

06 10 13  53000

3   0   6  25  17  2  030

0  2 21 8 61400

0  25 1 7300  0

0    4    7    6   4   2   1        1

1    6    2 10 8   4       0

1    4   5  10   5       4

0 15 6    6

______________________________________________________________________0  3   4     13

Aaa

Aa1

Aa2

Aa3

A1

A2

A3

φ Baa1

⅛ Baa2
φ

∩~ Baa3

Ba1

Ba2

Ba3

B1

B2

B3
≤Caa1

139  15    5    6  0

3  7 14  110

0    0    8    1   1   0   4

5   2    2    1  4   3   0     0

120 5 6 45  3  0

0    0    0   1   4   1     0     0     0

0003 0 9  0  10

0  0   1   4   10    15     4   3    0

007  2  5  8 10  00

00 0  6 18 9403

0  0  0  19 14  5740

0     0     5    1     3    2   5   0   1

0     2    1     5    1   5   5   4       0

0    1     5    5   6   6   6        1

0    1     5   4   6   1        3

0    0   3   6   3       7

______________________________________________________________0  0  5  5     13

Note: observations above (below) the diagonal are predicted by the model above (below) the actual rating.

54



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