Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/148362
Authors: 
Altdörfer, Marc
de las Salas Vega, Carlos A.
Guettler, Andre
Löffler, Gunter
Year of Publication: 
2016
Series/Report no.: 
IWH Discussion Papers 34/2016
Abstract: 
We analyse whether different levels of country ties to Europe among the rating agencies Moody's, S&P, and Fitch affect the assignment of sovereign credit ratings, using the Eurozone sovereign debt crisis of 2009-2012 as a natural laboratory. We find that Fitch, the rating agency among the "Big Three" with significantly stronger ties to Europe compared to its two more US-tied peers, assigned on average more favourable ratings to Eurozone issuers during the crisis. However, Fitch's better ratings for Eurozone issuers seem to be neglected by investors as they rather follow the rating actions of Moody's and S&P. Our results thus doubt the often proposed need for an independent European credit rating agency.
Subjects: 
credit rating agencies
sovereign debt crisis
rating splits
Eurozone
JEL: 
F65
G01
G14
G18
G24
H12
Document Type: 
Working Paper

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