Vivian van Breemen

167 that Moody’s is likely to tighten its rating standards when competition from KBRA intensifies, but only when the tranche is rated by both Moody’s and KBRA. While S&P tends to loosen its rating standards when the competitive pressures of DBRS and KBRA is higher, this occurs only when the tranche is not rated by a small CRA. Rather, S&P loosened its standard when the tranche received a rating from: S&P only; S&P and Moody’s or; S&P and Fitch. This suggests that S&P is less sensitive to higher or lower market share of its smaller competitors. Chapter 4 - Intensified Competition and the Impact on Credit Ratings

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