Assessing Developing Countries Creditworthiness Using the UTADIS Multicriteria Analysis Method

Barcelona

Congreso; 20th Conference of the International Federation of Operational Research Societies; 2014

International Federation of Operational Research Societies

Abstract Since the globalization of capital markets a higher number of developing countries governments are borrowing in international bond markets. It is important to have information that allows differentiating good than bad credit quality countries. This application involves the creditworthiness assessment of 98 developing countries previously classified in 9 ordered groups according to the implementation of an unsupervised classification method. Using UTADIS an additive utility function was developed that reproduced the classification with satisfactory results in terms of the classification error. Keywords Multi-Criteria Decision Analysis Developing Countries Finance