The Accuracy of Agency Ratings

Bandyopadhyay, Arindam (2019): The Accuracy of Agency Ratings. Published in: Economic and Political Weekly , Vol. 44, No. 36 (7 September 2019): pp. 15-17.

Abstract

Recently, regulators as well market participants have raised serious concerns about the validity of external credit ratings in predicting true status of corporate default risk in India. This article seeks to compare historical rating trends in India along with the global benchmarks. CRAs need to provide more insight about corporate rating movements to enable banks to derive early warning signals about inherent credit risk. The kind of risk indicators need to be disclosed has been highlighted in this article.

• Item Type: MPRA Paper
• Language: English
• Keywords: Credit Risk, Agency Rating, Validation
• Subjects: A - General Economics and Teaching > A1 - General Economics > A10 - General; G - Financial Economics > G2 - Financial Institutions and Services > G20 - General

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