209 Ch iRgAh se)r, oc rne advi teorra gper of ot er ctthi oe ns. aTmhee t rrea snuclht se , owf ht he ne al otgriat nrcehger ei ss si isosnuse da ri en pa rsot va itde ewd i ti nh TCaRbAlse,5.5, with the discrepancy between the credit rating of new and incumbent Higher by New, as the dependent variable. In column (1) of Table 5.5 we find that the odds ratio of the Creditor Friendliness Score is positive and significant (c wr eidt hi t oord fdrsi eonfd l0i n. 6e6s)s, si nc do ri cea ti ni ncgr etahsaets at hoen oe dsdt sa nodf aer xdp de reiveina ct iionng ian chri eg ahseer irna t ti nh ge bt rya nac hn ee ,wi s sCuReAr sa n( Dd BmRaSr ko er t Kc Bo nRtAr )o. l sI na nt dh ef i nc odnssi emc iul at irv ep ocsoi ltui vme ns si g wn ief i ci annc lturdees uol tusr, columns (2) to (5). Column (5) represents our full model, including all control variables. We show that the coefficient of our key independent variable, Creditor Friendliness Score, remains positive and highly significant, with the odds of 0.94 (z-statistics of 2.95), in our full model, column (5). These results suggest that new CRAs are more likely to provide a more optimistic cmr ae jdoi rt i rt ya t ionf g) , tohne atvr ea rnacghee ’fso rc ot hl l ea tsearma l ei st riasns cuhe ed, it nh aan ci rnecduimt obr e- fnr ti eCnRdAl ys swt ahteen. T( thhi es finding is in line with our hypothesis that a more creditor friendly state provides a safer environment for a new CRA to assign a better credit rating to the liking of tr hi sek iss fsourerre (prua tt ai nt igo innaf ll al ot isosne )s , awr eh itloeoi nh iag hs ttaot ed owsi ot h. Tl oh we fei rn dc ri ne dg si t ionr -Tf ar bi el ne d5l. i5n seus gs ,gtehset tChRaAt sHm2 ,oirne wl i khei cl yh rwe pe opr ot soipt ttihma its it ni c ar asttiantges wt hi tahn hi ni gchuemr bc er endt iCt oRrA- fsr, iiesnsdulpi npeosrst ende. w 5.6.3 Creditor rights and issuers In this section, we investigate whether issuers consider the protection of creditors when they construct an RMBS deal. We are specifically interested if iosfs ut rearns s aa rc et i owni lsl iinz eg ) t of o rt aakne RmMo Br eS rtirsaknss abcyt icoonn tsht raut citsi ni gs s au el da r igne ra dme ao lr e( i cnr et edri tmo sr Chapter 5 - The Impact of Creditor Protection
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