Why rating agencies disagree on sovereign ratings
Bernhard Bartels ()
Additional contact information
Bernhard Bartels: University of Mainz
Empirical Economics, 2019, vol. 57, issue 5, No 8, 1677-1703
Abstract This paper explores why rating agencies disagree on a country’s sovereign default risk. Specifically, we analyse the sovereign ratings of four agencies and their interactions on an empirical basis. Our findings indicate that the frequency of split ratings and their lopsidedness are the result of uncertainty and the use of different rating methodologies but not of a home bias. Still, rating agencies treat world regions differently. Finally, a small and subscriber-paid agency appears to be more independent but also more volatile in its rating behaviour than the issuer-paid Big Three (Standard and Poor’s, Moody’s and Fitch).
Keywords: Sovereign credit ratings; Credit rating agencies; Split ratings; International finance (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s00181-018-1503-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:empeco:v:57:y:2019:i:5:d:10.1007_s00181-018-1503-y
Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2
Access Statistics for this article
Empirical Economics is currently edited by Robert M. Kunst, Arthur H.O. van Soest, Bertrand Candelon, Subal C. Kumbhakar and Joakim Westerlund
More articles in Empirical Economics from Springer
Bibliographic data for series maintained by Sonal Shukla ().