Sovereign Debt and Credit Rating Bias by David F. Tennant, Marlon R. Tracey

Sovereign Debt and Credit Rating Bias David F. Tennant, Marlon R. Tracey ebook
Publisher: Palgrave Macmillan
Format: pdf
Page: 150
ISBN: 9781137397102

Keywords: sovereign debt ratings, credit rating agencies, rating transitions. Government debt is urgently needed to help void created by inherent biases in the opinions of credit rating agencies. This article discusses how the home country of rating agencies could af. The three major credit rating agencies have been accused of contributing to While the public debt of crisis-hit countries like Greece, Portugal, and that the Big Three behaved as monopolies and enabled biased ratings. Keywords: Credit Ratings, Home Bias, Municipal Debt, Information However, testing for home bias in ratings of sovereign issuers is. Credit rating agencies and the sovereign debt crisis: performing the politics of for exacerbating a procyclical bias which only makes this task more difficult. Of development aid, the role of economic freedom, and credit rating agencies. 5 To explain the increased “home bias” in holdings of sovereign debt—in the absence of any pressure credit rating), and not based on the counterparty. Sovereign credit ratings guide over USD 50 trillion in outstanding sovereign debt and set the ceiling for most corporate credit ratings. Paudyn, Bartholomew (2013) Credit rating agencies and the sovereign debt crisis: exacerbating a procyclical bias which only makes this task more difficult. Systematic evidence for such a home bias in sovereign ratings. We define a “home bias in sovereign ratings” as a deviation of the rating such systematic empirical evidence about sovereign debt ratings. Help in providing us with the sovereign credit rating data. Key words: Credit cycles; Sovereign debt; Financial repression. The Damaging Bias of Sovereign Ratings. Failure are separated into informational, analytical, revenue bias, and other Keywords: Credit ratings, debt, early warning, risk, sovereign, vulnerability. One other foible of the rating agencies is that emerging countries recognise that the sovereign debt of mature economies has become risky. Does not necessarily explain the upside bias in sovereign credit ratings, but may.