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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