Are Rating Agencies Powerful? An Investigation Into the Impact and Accuracy of Sovereign Ratings - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Are Rating Agencies Powerful? An Investigation Into the Impact and Accuracy of Sovereign Ratings write by Mr.John Kiff. This book was released on 2012-01-01. Are Rating Agencies Powerful? An Investigation Into the Impact and Accuracy of Sovereign Ratings available in PDF, EPUB and Kindle. We find that Credit Rating Agencies (CRA)'s opinions have an impact in the cost of funding of sovereign issuers and consequently ratings are a concern for financial stability. While ratings produced by the major CRAs perform reasonably well when it comes to rank ordering default risk among sovereigns, there is evidence of rating stability failure during the recent global financial crisis. These failures suggest that ratings should incorporate the obligor's resilience to stress scenarios. The empirical evidence also supports: (i) reform initiatives to reduce the impact of CRAs' certification services; (ii) more stringent validation requirements for ratings if they are to be used in capital regulations; and (iii) more transparency with regard to the quantitative parameters used in the rating process.
Are Credit Rating Agencies Powerful?
Are Credit Rating Agencies Powerful? - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Are Credit Rating Agencies Powerful? write by Jean-David Herld. This book was released on 2013. Are Credit Rating Agencies Powerful? available in PDF, EPUB and Kindle.
Rating Politics
Rating Politics - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Rating Politics write by Zsófia Barta. This book was released on 2023-04-03. Rating Politics available in PDF, EPUB and Kindle. How do countries' political and policy choices affect the credit ratings they receive? Sovereign ratings influence countries' cost of funding, and observers have long worried that rating agencies - these unelected, unappointed, unaccountable, for-profit organizations - can interfere with democratic sovereignty if they assign lower ratings to certain political and policy choices. The questions of whether, how, and why ratings react to policy and politics, however, remain unexplored. Rating Politics opens the black box of sovereign ratings to uncover the logic that drives rating responses to political and policy factors. Relying on statistical analysis of rating scores, interviews with sovereign rating analysts, and a close reading of the official communications of rating agencies about their decisions, Zsófia Barta and Alison Johnston show that ratings penalize center-left governments and many (though not all) policies associated with the center-left agenda. The motivation for such penalties is not rooted in assumptions about how those political and policy features affect growth and debt servicing capacity. Instead, ratings are lower in the presence of those features because they are expected to make a country more vulnerable to market panics whenever the economy is hit by unforeseen shocks, as they signal insufficient willingness and/or ability to engage in determined austerity for the sake of reassuring markets. Since market panics and the resulting "sudden stops" of funding lead to humiliating collapses of ratings, rating agencies attempt to insure themselves against "rating failures" by pre-emptively assigning lower ratings to countries with the "wrong" political and policy mix.
Ratings, Rating Agencies and the Global Financial System
Ratings, Rating Agencies and the Global Financial System - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Ratings, Rating Agencies and the Global Financial System write by Richard M. Levich. This book was released on 2012-12-06. Ratings, Rating Agencies and the Global Financial System available in PDF, EPUB and Kindle. Ratings, Rating Agencies and the Global Financial System brings together the research of economists at New York University and the University of Maryland, along with those from the private sector, government bodies, and other universities. The first section of the volume focuses on the historical origins of the credit rating business and its present day industrial organization structure. The second section presents several empirical studies crafted largely around individual firm-level or bank-level data. These studies examine (a) the relationship between ratings and the default and recovery experience of corporate borrowers, (b) the comparability of credit ratings made by domestic and foreign rating agencies, and (c) the usefulness of financial market indicators for rating banks, among other topics. In the third section, the record of sovereign credit ratings in predicting financial crises and the reaction of financial markets to changes in credit ratings is examined. The final section of the volume emphasizes policy issues now facing regulators and credit rating agencies.
The Rating Agencies and Their Credit Ratings
The Rating Agencies and Their Credit Ratings - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Rating Agencies and Their Credit Ratings write by Herwig M. Langohr. This book was released on 2008. The Rating Agencies and Their Credit Ratings available in PDF, EPUB and Kindle. This title is a guide to ratings, the ratings industry, and the mechanics and economics of obtaining a rating. It sheds light on the role that the agencies play in the international financial markets.
