Using monthly and multi-day return windows, research shows that credit rating downgrades often reveal new information lead to significant stock price reactions but upgrades do not. intraday data, we revisit these findings extend them by examining the possibility of informed trading ahead announcement changes. Credit agencies delay public announcements changes provide issuers with time review re...

Purpose: This study investigates the industry competitiveness problem, which plays an important role in crediting rating industry safety. Based on a comprehensive literatures review, we found that there is much room to improve regarding of competitiveness assessment in crediting rating industry. Design/methodology/approach: In this study, we propose the PCA (Principal Component Analysis) method...

Credit rating agencies (CRA) are qualified as “auxiliaries of the financial information” by all the investors. Ratings are the results of a methodology used by CRA. Within the framework of a demystification of the method of work of agencies, the objective of this paper is to identify the importance of the accounting and financial information adjustments in the decisions of rating agencies. This...

Moody's endorses the Basel Committee's proposal to use banks' internal risk assessments to re®ne the Basel Accord's risk weights on bank assets and commitments. External risk assessments, such as Moody's credit ratings, will likely play a supporting role as direct inputs into banks' internal rating systems and as tools for benchmarking and validating those systems. However, the widespread use o...