The paper analyzes the effect of competition between credit rating agencies (CRAs) on the information content of ratings. We show that a monopolistic CRA pools sellers into multiple rating classes and has partial market coverage. This provides an opportunity for market entry. The entrant designs...

The paper analyzes how entry of a new rating agency changes the information content of ratings. In the first part of the paper we build a model to analyze the optimal disclosure policy of a monopoly rating agency depending on the value of information to the buyers, and then describe the...

The paper analyzes how entry of a new rating agency changes the information content of ratings. In the first part of the paper we build a model to analyze the optimal disclosure policy of a monopoly rating agency depending on the value of information to the buyers. Then we describe the potential...

The paper analyzes the effect of competition between credit rating agencies (CRAs) on the information content of ratings. We show that a monopolistic CRA pools sellers into multiple rating classes and has partial market coverage. This provides an opportunity for market entry. The entrant designs...

There has been a net propensity over the last decade for the dominant rating agency of the U.S. insurance industry, A.M. Best, to downgrade property-liability insurers. This could reflect a general deteriorating credit worthiness of the industry or an increase in the performance thresholds...

There has been a net propensity over the last decade for the dominant rating agency of the U.S. insurance industry, A.M. Best, to downgrade property-liability insurers. This could reflect a general deteriorating credit worthiness of the industry or an increase in the performance thresholds...