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Credit Rating Agencies: An Overview

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  • Lawrence J. White

    () (Kaufman Management Center, Stern School of Business, New York University, New York, NY 10012)

Abstract

Credit rating agencies (CRAs) play a central role in the debt (bond) markets of many countries. CRAs have also attracted a considerable amount of public and policy attention during the past decade, especially with respect to their role in the financial crisis of 2008–2009 and their role in the more recent Eurozone difficulties. This article provides an overview of the CRAs: who they are, what they do, how their centrality to the financial markets came about, what their role in the financial crisis was, and the important aspects of the policy measures that have affected the CRAs.

Suggested Citation

  • Lawrence J. White, 2013. "Credit Rating Agencies: An Overview," Annual Review of Financial Economics, Annual Reviews, vol. 5(1), pages 93-122, November.
  • Handle: RePEc:anr:refeco:v:5:y:2013:p:93-122
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    File URL: http://www.annualreviews.org/doi/abs/10.1146/annurev-financial-110112-120942
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    Full references (including those not matched with items on IDEAS)

    Citations

    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. In Search of Better Credit Assessments
      by Steve Cecchetti and Kim Schoenholtz in Money, Banking and Financial Markets on 2014-09-18 17:28:35

    Citations

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    Cited by:

    1. Lawrence J. White, 2019. "Using the Tools of Industrial Organization to Illuminate the Credit Rating Industry," Working Papers 19-02, New York University, Leonard N. Stern School of Business, Department of Economics.
    2. Xiaoyang Zhuo & Guangli Xu & Yongjin Wang, 2017. "The Issuer-pays Business Model and Competitive Rating Market: Rating Network Structure," The Journal of Real Estate Finance and Economics, Springer, vol. 55(2), pages 216-241, August.
    3. van 't Klooster, Jens & van Tilburg, Rens, 2020. "Targeting a sustainable recovery with Green TLTROs," SocArXiv 2bx8h, Center for Open Science.
    4. Lawrence J. White, 2016. "Credit Rating Agencies: An Analysis Through the Lenses of Industrial Organization, Finance and Regulation," Pacific Economic Review, Wiley Blackwell, vol. 21(2), pages 202-226, May.
    5. Itay Goldstein & Chong Huang, 2020. "Credit Rating Inflation and Firms' Investments," Journal of Finance, American Finance Association, vol. 75(6), pages 2929-2972, December.
    6. Lawrence J. White, 2019. "Using The Tools of Industrial Organisation to Illuminate The Credit Rating Industry," The Japanese Economic Review, Springer, vol. 70(3), pages 367-374, September.
    7. Dimitar Rafailov, 2020. "Regulation of Credit Rating Agencies - Different Views and Solutions," Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, Union of Scientists - Varna, Economic Sciences Section, vol. 9(2), pages 13-22, August.

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    More about this item

    Keywords

    credit rating agencies; nationally recognized statistical rating organization (NRSRO); financial regulation; financial crisis; Dodd-Frank Act;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation

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