72 requirements to reflect such credit rating risk. The literature emphasizes that, ionf ignefnoer rma al , t di oi sncal ovsaiinl agbcl er etdoi ti nrvaet si nt og rssotfomp oe rr ef otrhma na or insek Ca Rs sAe si ns mc reena ts easn dt hdeeacmr eoaus enst tMh oe rreei qr au i&r eZdhyaioe, l 2d 0a1t 8i s)s. uC aonncsee q( Bu oe nn tglaye, wr t es reat na lo. , u2r0t1h2i r; dG süentt oa yf t&e sHt sa ac kn bdafrotuhn, 2d 0t h1 a0t; icnl evaersltyo rdsi fdf eor ev na rt iya tt eh ebi er trwe eq euni r eCdR Ay ise. l dI t baapspeeda rosn tChRa tA, froi srk CaLsOs etsrsamn ce hn et ss , rbaut te dt h be yy S&P, investors do not significantly rely on the additional information content of ar artai nt ignsgc bo yn tMr ioboudt ey ’ssuibns tt ha ne itri aal sl ys ems os mr eetnott ho fe tehxep rl aenqautior er yd pyoi ewl de .r Fouf rotuhrerremgor er es s, iSo&nPs than Moody’s ratings, both before and after the crisis. The latter finding suggests tr ha taitn ignsvme sut oc hr smaoprpee saor tt ho ajnu dt hg ee ot ht ha et rMwoaoyd ay r’ so ur antdi n. Ignsv ae rs et ocr as t ae pr epde atro t mo ab tec ha wSa&rPe of this and hence price this credit rating risk at issuance. To the best of our knowledge, this paper is the first to test the relation between the ct oo ma pg rl eoxwi tiyn go fb ao dCyL Oo f dl iet seirgant uarnedt ht ha et tnr ui ems bt oe rb oe tf t reart ui nngdsedr si st calnods et dh .e Wc oe mc op nl et xr ii tbyu ot ef sa tnrdu crtautri endg fsi nh aonpcpei nsge caunrdi t i ceas t (esrei ne ge .bg e. , hFauvrifoi nr se , (2s 0e e1 4e; . gS.k, rBeot an g&a eVretlsd keat ma pl . ,, 22000192); Griffin et al., 2013). Our results are also relevant to policy-makers as it increases the understanding of the extent to which investors rely on credit ratings of S&P amnadk eMr so oi nd yt ’hse f oUrS caonmd pEl ue xr ospt er ui cnt uc or ends i df i enrai nn cge t hs ee ceufrf ii tciaecsy. Ta nh di s emf f iacyi ehneclyp opf ot lhi ceyi r- diverging regulatory policies on requiring multiple ratings on all structured finance securities, regardless of the complexity of the design characteristics of the securities. Tt hhee rbea sairseosf i txh seelci tt ei orna tsutrheaat sf oi tl l roewl a. tIens St oe cct ri oend i t3 .r2a twi neg bpuriol dc e os suers hf yo pr ostthr ue sc et us roe nd
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