155 Oh ivgehrearl l ,o trhleo wr eesruml t sa rokf eTt asbhlaer e4s. 4f rsohmo wi t st hl aa tr gDeBr RpSe earnsd. SKpBe cRiAf i crael al yc, t wdei f ff ei nr de ntthl ya tt oa h( ci lgohseerr mt oaAr kAeAt ) srhaat irnegof fr ot hme Dl aBrRg Se fCoRr At hserseasmu let st ri annac hl oe w. Seor, Dl i Bk eRl Si hios ondo topf rao vbiedtitnegr the better credit rating, Moody’s or S&P are. KBRA, however, does provide the better rating compared to that of Moody’s with an increasing market share. This means that our first hypothesis (H1A), that with a higher market presence of a large CRA, small CRAs tend to report better ratings than large CRA, can only be supported for KBRA, not for DBRS. Ivna rTi aabbllees 4(.t5h, ewme arrekpeet asthoaur er s aonfa ltyhsei sl aorfg eTra bClRe A4s. )4 ,bbyutth ree mp l aa rcke eot usrh adreepseonfd et hnet sCmR Aa lsl ehra Cv eR Ao ns . tWh ee ldaor gseo CaRs Aws e, easrpee ac li sa ol l yi nstienrcees tt ehde imn atrhkee it ms hp aa rcet ot hf astmt ha lel sCmR Aa lsl ei sr i4n. 5c r pe ar es isnegn trse mt haer koadbdlsy ri na t ti oh se oRfMrBe gS rme sasri ko ents of voer rt trha ne cl ha sets yreaat resd. PbaynMe loAo doyf ’ sT.a Wb l ee as og awi ne ucsoen os tnrluy c tt r at hnec hf oe sl l ot hwai tn gr escue bi vseadmap lreast:i nogn eo f f ob ro tthr aan cl ahregse raant edda bsymMa lol oCdRyA’ s, and DBRS (columns 1 to 4) and one for tranches rated by Moody’s and KBRA (wc ho el ur me nwse 5a tl soo8s) p. Wl i teopuerr fsoarmmp lae siinm ti lwa ro asnuabl syas mi s pf ol ersS: &o Pn ei nf oPra tnrealnBc hoef sTraabtleed4b. 5y, S&P and DBRS (columns 1 to 4) and one for tranches rated by S&P and KBRA (columns 5 to 8). In both panels of Table 4.5, we use all our measures of market share for smaller CRAs, as specified in Section 4.3.2, as independent variables. Firstly, we analyze the tranches rated by both Moody’s and DBRS in columns (1) to (4) of Panel A. We find no significant effect for our first market share measure of DBRS, MS DBRS by Balance, in column (1) of Panel A. However, for our other market share measure of DBRS in column (2), we find highly significant results; the odds ratio of MS DBRS by Tranche is positive and statistically significant Chapter 4 - Intensified Competition and the Impact on Credit Ratings
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