208 negative coefficients for our Creditor Friendliness Score. A result consistent with oi nucrr ecaosme bi ni n et hde ccr reeddi ti t roart ifnr ige nmdel ianseusrse si cno Tr ea bdl ee c5r e. 3a. s Se ot, hae oonded- ss toa fn de xa pr de rdi eenvci ai nt igo na sa tnrdi c -t3e .r6 r8a, tri ensgp (efcut ri vt eh leyr, aaswsahyofwr onmi nAcAoAl u) mo nf sD B( 1R) Saanndd( M3 )o. oI ndtye ’rse, swt i int ghl yo, dt dh es oo fd-d0s. 9o0f MS &oPo da yn’ds rFei pt cohr, t hi nogwaemv eorr, ewoepftiinmdi snt oi c rrealtai tni go ni s af ot ua rl l t bi me tews ehei gnhtehret hc raendDi t Bo rR-Sf r. iFeonrdKl iBnRe sAs, st hc oe sr ee raensdu ltthseai rr ec irne dl iint er awt ii nt hg ,ocuorl ur emv ni esw( 2o)f , t(h4e) ,c ar enddi t( 5r a) t ii nn gTma bel teh5o.d4o. Al opgai er st wf r ohme r eS &wPe, showed that Fitch and KBRA do not take creditor friendliness per state into account, while the remaining CRAs (Moody’s, S&P, and DBRS) do. In sum, the results of Table 5.3 suggest that credit ratings differ, on average, bd ei stcwl oeseen bUeSt tset ra tcersewd iitt hr adtiifnf egrse fnotrl et vr ae nl sc oh fecs r iesds iut oe dr pi nr ost teacttei os nw. Wi t he shhi gohwe rt hcarteCdRi tAo sr friendliness scores. At the same time, if we look at each CRA separately in Table 5s u. 4c,hwree loabt isoenr vfeo r t Kh aBtRtAh,i sS &i sPo na nl yd t rFui tec hf o. rHMo wo oe dv eyr’ s, iat nsdh oDuBl dR Sb, ewnhoi ltee dw et hfai nt di t nios difficult to determine the exact reason for our findings as it could also be that the underlying pool is, on average, riskier in states with lower creditor protection.64 Overall, our results support our first hypothesis (H1) in which we posit that cCrReAdsi two rhferni etnhdelyi naessssi gpnecr rUe dS ist traattei ni sg sc ot on sRiMd eBrSe dt riann ac hneisn. c o n s i s t e n t w a y b e t w e e n 5.6.2 Creditor rights and competition Ionp tt hi mi si ss et icct i(oonr , iwn fel aatneadl)y zr ae tiifnDgBs Rc oS ma npda rKeBdRtAo (Mnoe owdCy R’ sA, Ss&) aPr, ea nmdoFr ei t cl ihk e( li yn ct ou ma sbsei gnnt 64traGnisvaecntiodna.ta limitations, we cannot control for the inherent risk of the underlying pool of the securitization
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