Over the past ten years, credit rating agencies have come under intense criticism from both practitioners and academics … competitive advantages in evaluating credit quality. It then reviews the empirical evidence on the information content of ratings … related to credit quality and 2) information related to the firm's ability to access debt. Based on this evidence, I suggest …

We find that Credit Rating Agencies (CRAs) see through transitory shocks to credit risk that stem from transitory … shocks to equity prices, while market-based measures of credit risk do not. For a given stock return, CRAs are significantly … less likely to downgrade firms with transitory shocks than those with permanent shocks. However, credit default swap …

Over the past ten years, credit rating agencies have come under intense criticism from both practitioners and academics … competitive advantages in evaluating credit quality. It then reviews the empirical evidence on the information content of ratings … related to credit quality and 2) information related to the firm's ability to access debt. Based on this evidence, I suggest …