185 credit rating, irrespective of the CRA. Second, there are three CRAs (Moody’s DBRS, Kf oBr RUAS) RtMh aBt S e, xhpolwi cei tvleyr, i no cnlluy dMe ocorde yd’ist oarn dp rDoBt eRcSt i sohno iwn at hsei gi rn irf ai ct ai nngt immeptahcot di on l oo guyr ac rneadl yi tsoi sr , pKrBo Rt eAc tdi oone sl enaodt s. Inne owu rC Rs eAcso n( Dd BsRe St oafntde sKt sB, RwAe caonma lbyi znee dw) hteot haes rs ihg ing, hoenr average, more optimistic ratings than the incumbent CRAs (Moody’s, S&P, and Fitch combined). We find that they do. New CRAs are more likely to provide a mt r aonr cehoep’ st icmo lilsatti ce rraal tiisn gl o ccaotme dp ai nr ead sttoa tien wc ui mt hbae nl otwC Rc rAesd iwt ohrepnr ot ht eec t(imo na.j oI nr i toyu ro ft ht hi red), ai nn sdt af itneas l w, siet th os ft rt oe ns tgsewr cer ee xdai tmo ri nper owt he cettihoenr. Wi s seufei nr sd st ehlal tl ai srsgueer rtsr ai nndceheeds ci no nt hs ter umcat raknedt sell deals with larger transaction values in more creditor friendly states. Oc ruerd si ttourd ryi gc oh nt st ri inb uUtSe ss ttaot et hs ei ml i tpearcattsu trhe eo Rn Mc rBeSd imt oarr pk reot .t eWc et i ot hnebr ye bi dy ecnotni ftyriinbgu theotwo a growing body of literature that studies creditor rights (see, e.g., Bae and Goyal, 2009; La Porta et al., 1998; Qian and Strahan, 2007) and its impact on bond (me a. gr. k, eMt sa .nTs hi ee ts aa ll i. e, n2 t0 f0e9a)t uarneds or ef soi ud re ns tt ui adl yma or er ttghaagtew( ee . eg x. , aDmeimn ei rtohgel ui me pt aacl .t, o2n0 1t h4e) private-label US RMBS market, and that we find that in-country differences in creditor rights are impactful on the RMBS market. To the best of our knowledge, we are the first to link in-country differences in creditor protection related to tohf eGchreendti t( 2r a0t1i n4g) s wa ht toa cshheodwtso tRh Ma t BcSr et dr ai tnocrh re isg. hWt se dt ihf ef erre bbye tbwuei ledn uUp So ns ttaht ee ss taunddy, additionally, we also extent the body of literature on credit rating quality (see, e2.0g1.,6F;aZbhoozuzieettala.,l.2, 021072)2.; Flynn and Ghent, 2018; Griffin et al., 2013; He et al., Tt hhee erxei ms t iani ng dl iet re roaft ut hr ee apnadp ei nr Si se cotri go ann5i z. 3e dw ea sc of onl sl ot rwusc.t Ionu Sr ehcyt pi oont h5e. s2e ws . eI ne Sx ae mc t ii on ne Chapter 5 - The Impact of Creditor Protection
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