166 statistically significant negative coefficients for our market share measures of DBRS (MS DBRS by Frequency) and KBRA (MS KBRA by Frequency), indicating that S&P tends to loosen its rating standards when the market share of the small CmRaAr ks eits shhiagrhee or. f SDpBe Rc iSf i c( aKlBl yR, Aw)ec foi rnrde stphoant das ot no ea- ns t aunpdgar ar dd edoe fv i1a.t8i o8 n( 2i n. 0c8r )e ansoet ci nh in S&P’s rating. Furthermore, similar to Moody’s, we also find that S&P tends to upgrade its credit rating when the tranche is rated by two or three CRAs. This result is indicated by the negative significant coefficient for Number of Ratings in both columns (5) and (8). Irna t Pi nagn ferloBm obf oTt ahbal es m4 .a7l,l wa nedaag al ai nr glei mCiRt Ao.uWr es asmp lpi tl eo ut or st ar amnpc lheeisn tthraatn cr ehceesi vr ea dt e da b4 y) , MS &oPo dayn’ds Da nBdR SD(BcRoSl u(mc onlsu 5manns d16a) ,nadn 2d )S, &MPo ao nd dy ’ sK Ba nRdA K( cBoRl uAm(nc so l7u ma nnds 83) . aWn de do so to analyze if large CRAs adjust their rating standards differently when the tdroaensc hweh ae lns oa ot rbatna ci nheeda al s oc rreedciet i vr aetdi nag roaft i an gs mo fa Kl l eBrR CAR. AT hs .i sWree sfui nl td i st hpartoMv i od oe dd yi’ns column (3) of Panel B, where we observe a positive significant coefficient for MS KBRA by Frequency, with odds of 56.34 (z-stat = 2.77). The economic magnitude ot hf at th ae oc on ee f- fsi tcai enndta reds tdi me vaitaet iios np irnecsreenatseed i inn mc oa lrukme tns h( 4a)r.eTohf eKmB Ra gAnci tourdr ee sipnodni cdast et os a downgrade of 8.57 notch in Moody’s rating. We find no significant results for DBRS’ market share measure, MS DBRS by Frequency. This means that Moody’s is nI fowt lei kleoloykt oa ta dt hj ues rt ai tt isnrga tsitnagn ds taarndds aor df sS &wPh ei nn mc oal ur kment ss h(a5r)et for o( m8 ) Di nB RPSa ni se lhBi g, hwe re. observe no highly significant results for our market share measures of small CRAs. Overall, not only small CRAs, but also the large incumbents modify their rating standards when competition of their smaller peers is higher. Concretely, we find
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