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Credit Rating Agencies: An Overview

Author

Listed:
  • 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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    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. Anna Bayona & Oana Peia & Razvan Vlahu, 2023. "Credit Ratings and Investments," Working Papers 776, DNB.
    2. Afik, Zvika & Galil, Koresh, 2025. "Have ratings become more accurate?," Journal of Banking & Finance, Elsevier, vol. 170(C).
    3. 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.
    4. Itay Goldstein & Chong Huang, 2020. "Credit Rating Inflation and Firms' Investments," Journal of Finance, American Finance Association, vol. 75(6), pages 2929-2972, December.
    5. Ammer, John & Rogers, John & Wang, Gang & Yu, Yang, 2025. "Visible Hands: Professional Asset Managers’ Expectations and the Stock Market in China," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 60(5), pages 2469-2499, August.
    6. Dang, Man & Puwanenthiren, Premkanth & Jones, Edward & Nguyen, Thieu Quang & Vo, Xuan Vinh & Nadarajah, Sivathaasan, 2022. "Strategic archetypes, credit ratings, and cost of debt," Economic Modelling, Elsevier, vol. 114(C).
    7. repec:mth:ijafr8:v:9:y:2019:i:1:p:209-228 is not listed on IDEAS
    8. 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.
    9. 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.
    10. 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.
    11. Helmut Wasserbacher & Martin Spindler, 2024. "Credit Ratings: Heterogeneous Effect on Capital Structure," Papers 2406.18936, arXiv.org.
    12. Jaspreet Kaur & Madhu Vij & Ajay Kumar Chauhan, 2023. "Signals influencing corporate credit ratings—a systematic literature review," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 50(1), pages 91-114, March.
    13. repec:osf:socarx:2bx8h_v1 is not listed on IDEAS
    14. deHaan, Ed & Li, Jiacui & Watts, Edward M., 2023. "Retail bond investors and credit ratings," Journal of Accounting and Economics, Elsevier, vol. 76(1).
    15. Li, Donghui & Li, Yuan & Yuan, Chun, 2025. "Broadband policy and bank loans," Pacific-Basin Finance Journal, Elsevier, vol. 90(C).
    16. 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.
    17. Heidrun Hoppe-Wewetzer & Christian Siemering, 2022. "Advertisement-financed credit ratings," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 46(1), pages 188-206, January.
    18. Afik, Zvika & Zabolotnyuk, Yuriy, 2023. "Information effect of credit rating announcements in transition economies," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 89(C).
    19. Jiang, Fuxiu & Wang, Weiyi & Zheng, Xiaojia, 2024. "Board chair and credit rating of family firms: Evidence from China," Pacific-Basin Finance Journal, Elsevier, vol. 84(C).
    20. van 't Klooster, Jens & van Tilburg, Rens, 2020. "Targeting a sustainable recovery with Green TLTROs," SocArXiv 2bx8h, Center for Open Science.
    21. Chatoro, Marian & Mitra, Sovan & Pantelous, Athanasios A. & Shao, Jia, 2023. "Catastrophe bond pricing in the primary market: The issuer effect and pricing factors," International Review of Financial Analysis, Elsevier, vol. 85(C).
    22. Canale, Rosaria Rita & De Simone, Elina & Spagnolo, Nicola, 2021. "Financial markets and fiscal discipline in the Eurozone," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 490-499.
    23. Hossain, Ashrafee & Hossain, Takdir & Jha, Anand & Mougoué, Mbodja, 2023. "Credit ratings and social capital," Journal of Corporate Finance, Elsevier, vol. 78(C).

    More about this item

    Keywords

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    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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