Ford, Guy; Sundmacher, Maike - Macquarie University; University of Western Sydney; … - 2007
issued the debt. If banks price their assets to realise a target return on economic capital, then a higher credit rating will …An increase in the credit rating on an organisation?s debt is generally perceived positively, as higher credit ratings … result in higher loan rates if the fall in the bank?s cost of capital, associated with the lower insolvency risk, is …