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Sovereign Debt and Credit Rating Bias

  • David F. Tennant
  • Marlon R. Tracey
Book

Table of contents

  1. Front Matter
    Pages i-x
  2. David F. Tennant, Marlon R. Tracey
    Pages 1-14
  3. David F. Tennant, Marlon R. Tracey
    Pages 76-86
  4. David F. Tennant, Marlon R. Tracey
    Pages 103-114
  5. Back Matter
    Pages 115-125

About this book

Introduction

Sovereign Debt and Credit Rating Bias rejects the notion that credit rating agencies' rigorous and transparent determination of ratings leaves no room for bias, and debunks the myth that the value CRAs place on their reputational capital precludes prolonged biases. To determine the extent of CRAs' biased actions, Tennant and Tracey apply a rigorous methodology to a well-established economic model of the determinants of sovereign debt quality. They present strong evidence of bias against poor countries and demonstrate how biased rating changes could disadvantage such countries and the companies operating therein as they seek access to international capital markets. They discuss plausible explanations for the bias and suggest remedial measures that would help ensure balance in credit rating changes. This book fills an important gap by rigorously examining a long-standing but often ignored concern about the rating practices of credit rating agencies.

Keywords

Credit rating agencies Sovereign debt S&P Moody's Fitch Bias Upgrades Downgrades Developing countries Standard & Poor Developing Countries Rating

Authors and affiliations

  • David F. Tennant
    • 1
  • Marlon R. Tracey
    • 2
  1. 1.Development Finance and Associate DeanUniversity of the West IndiesMonaJamaica
  2. 2.Binghamton UniversityState University of New YorkUSA

Bibliographic information

  • DOI https://doi.org/10.1057/9781137391506
  • Copyright Information The Editor(s) (if applicable) and The Author(s) 2016
  • Publisher Name Palgrave Pivot, New York
  • eBook Packages Economics and Finance
  • Print ISBN 978-1-349-67954-6
  • Online ISBN 978-1-137-39150-6
  • Buy this book on publisher's site