Rating agencies are often criticized for being biased in favor of borrowers, for being too slow
to downgrade following credit quality deterioration, and for being oligopolists. Based on a …

Surveys on the use of agency credit ratings reveal that some investors believe that rating
agencies are relatively slow in adjusting their ratings. A well-accepted explanation for this …

This paper examines why unsolicited ratings tend to be lower than solicited ratings. Both self-
selection among issuers and strategic conservatism of rating agencies may be reasonable …

Rating agencies state that they take a rating action only when it is unlikely to be reversed
shortly afterwards. Using a formal representation of the rating process, I show that such a …

A primary cause of the recent credit market turmoil was overdependence on credit ratings
and credit rating agencies. Without such overdependence, the complex financial …

The credit rating industry has historically been dominated by just two agencies, Moody's and
Standard & Poor's, leading to long-standing legislative and regulatory calls for increased …

I analyze the market for credit ratings with competition between more than two rating
agencies. How can honest rating behavior be achieved, and under which conditions can a …

An enduring puzzle is why credit rating agencies (CRAs) use a few categories to describe
credit qualities lying in a continuum, even when ratings coarseness reduces welfare. We …

Credit rating agencies do not only disclose simple ratings but announce watchlists (rating
reviews) and outlooks as well. This paper analyzes the economic function underlying the …

A the credit rating agencies. At the same time, the number of rating agencies operating in the
United States and abroad has risen sharply. Together, these trends have prompted market …