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In this study, data from two credit rating agencies are analyzed to consider how different Bank Financial Strength … Ratings and Credit Ratings from two rating agencies compare. To my knowledge, prior research has not analyzed Bank Financial … Strength Ratings from different rating agencies, nor has it compared Bank Financial Strength Ratings to general credit ratings …
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Using a sample of issuers rated by Moody’s and S&P, we find evidence that Moody’s rating change intensities are higher given a rating change by S&P. This seems to be tentative evidence that S&P assigns ratings in a timelier manner than Moody’s. Second, we find that the tendency towards...
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The 2008 crisis made clear that credit rating agencies (CRAs) can contribute to systemic financial risk. Surprisingly, post-crisis reforms have hardly addressed the underlying problems, including rating agencies' methodologies, their ratings' homogeneity, and widespread market reliance on these...
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