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Market Power in the Credit Rating Industry: State of Play and Proposal for Reforms

BY | January 28, 2014

This article is part of a Chronicle. See more from this Chronicle Bertrand Candelon, Axel Gautier, Nicolas Petit, Jan 28, 2014 In recent years, the Credit Rating Agencies have been…

This article is part of a Chronicle. See more from this Chronicle

Bertrand Candelon, Axel Gautier, Nicolas Petit, Jan 28, 2014

In recent years, the Credit Rating Agencies have been in the eye of the storm. Some argue that CRA rating errors-symptomatized by rating inflation or deflation-originate in excessive competition. This paper argues that the low level of competition in credit rating is a better explanation for rating this phenomenon.

To show this, the present paper is divided in seven sect

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