Title

The Effect Of Solicitation And Independence On Corporate Bond Ratings

Keywords

Bond rating; Bond rating agencies; Corporate finance; Solicitation

Abstract

This comparison of solicited and independent bond rating agencies performance reveals that the ratings assigned by Moody's and Standard & Poor's are consistently lower than those assigned by Duff and Phelps and Fitch IBCA and are consistently higher than those assigned by MCM. While Moody's and S&P generally downgrade bond ratings sooner than Duff and Phelps and Fitch IBCA, the four major agencies upgrade at the same time. Moody's tends to have a higher upgrade magnitude than Duff and Phelps, but the downgrade magnitudes do not differ. MCM upgrades its ratings more quickly than either Moody's or S&P. The results give support to the timeliness and accuracy of ratings provided by the independent agencies. © Blackwell Publishing Ltd. 2004.

Publication Date

11-1-2004

Publication Title

Journal of Business Finance and Accounting

Volume

31

Issue

9-10

Number of Pages

1327-1353

Document Type

Article

Personal Identifier

scopus

DOI Link

https://doi.org/10.1111/j.0306-686X.2004.00576.x

Socpus ID

70349806495 (Scopus)

Source API URL

https://api.elsevier.com/content/abstract/scopus_id/70349806495

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