Körner, Finn Marten; Trautwein, Hans-Michael - ZenTra - Center for Transnational Studies - 2014
It is frequently argued that credit rating agencies (CRAs) have acted procyclically in their rating of sovereign debt … currency of a monetary union. We examine the major CRAs’ methodologies for rating sovereign debt and test their ratings for a …. Using a newly compiled dataset of quarterly sovereign bond ratings from 1990 until 2012, we find some evidence that EMU …