Vivian van Breemen

164 Ibnu tPwa neerl eBd uocf eToaubrl es a4m. 6pwl eet op et rraf onrcmh eas tshi ma ti lraerc eainvaeldy sai sr aatsi ni gn bPya an el al rAg eo af nTda bal se m4 a. 6l l, Cs tRa An d. aWr de sdtoo saogar es awt eer ae rxet einntt ewrhees nt e dt h ei newx ahcet tshaemr es mt raa lnl cChRe Aasl s oa drjeucseti vtehde iar rr aa tt ii nn gg from a specific larger competitor (Moody’s or S&P). We split our sample in tranches rated by: Moody’s and DBRS (columns 1 and 2), S&P and DBRS (columns 3 and 4), Moody’s and KBRA (columns 5 and 6), and S&P and KBRA (columns 7 and 8). We start by comparing the results for DBRS in Panel B (columns 1 to 4) with the results for DBRS in Panel A (columns 1 to 4). In Panel B, we observe results consistent with Panel A for DBRS; a negative and highly significant coefficient for MS Moody’s by Frequency (column 1) and no significant results for the market share measure of S&P (MS S&P by Frequency). If we move to the subsamples of K( zB- sRtAa ti n= c−o4l.u3m5 )nfso(r5M) tooo(d8y)’ somf Paarnkeelt Bs h, wa ree ombes earsvueren e( ga t ive o d d s ra t i o s o f − 1 3 . 7 MS Moody’s by Frequency), statistically significant at the 1% level. The economic magnitude of the coefficient eMsotiomdayt’ses( indicates that a one standard deviation increase in market share by MS Moody’s by Frequency) corresponds to an upgrade of 1.06 in KBRA’s rnaetginatgiv(ecoclouemffnic6ie)n, ftofrortrSa&ncPh’sesmraartekdetbsyhbaroethmMeoasoudrye’s(and KBRA. We also find a MS S&P by Frequency) in column 7, but only at the 5% significance level. Remarkably, KBRA tends to adjust (ClRo oAs (ePna) ni et sl Br a)t ibnugt sdt oa ensd anrodt sawd jhuesnt itthses tt raanndcahred sa lws oh er enc we i ev ecdo na sri adtei nr ga lol ft raalnacrhg ee sr rated by KBRA, including single and triple rated tranches (Panel A). Overall, the results of Table 4.6 show that DBRS and KBRA tend to loosen their rating standards as a competitive strategy against Moody’s, but not necessarily S&P. For DBRS, we find that it tends to loosen its rating standards when Moody’s ma sa rwkeeltl . sDh aBrReSi sd ohei gsh ne ro, tbaodt hj uws thietns trha tei nt rga ns tcahned iasr dasn dwihsenno tt hrea tceodmbpye Mt i toi oond yo’ sf

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