Abstract
This paper investigates the role of uncertainty to determinate credit ratings in BRICS economies. The paper uses Fitch credit ratings data from 1994 to 2019 with contrasted uncertainty with moving average daily stock prices. Durations of respectively 50 and 200 days rolling window were considered. The Panel Ordered Probit Model is applied and the findings indicate that uncertainty is statistically significant to determine credit ratings in BRICS economies, together with macro-economic and governance factors. Uncertainty contributes to the outcome of the rating both negatively and positively. High market levels contribute to upgrades and decrease the chances of downgrades. Whilst low market levels contribute to downgrades. In essence, the findings suggest that volatility in stock prices impacts the credit that are assigned to countries. The Government has limited control over the country’s financial market, however it is recommended that a policy is developed which will reduce volatility in the financial market.