An increase in the credit rating on the debt of an organisation is generally perceived positively, as higher credit ratings are, in the main, associated with lower perceived volatility in the market value of the assets of the entity that has issued debt. Lower asset volatility implies more...

We explore the practices of international rating agencies and develop a framework based on the auditor independence model to understand the various rating agency methodologies. Rating agencies methodologies are classified as solicited, unsolicited or co-operative depending upon: (1) whether the...

In the 1990s, the importance of international rating agencies became more pronounced among stakeholders who were interested in screening companies based on specific financial criteria. Now with a focus on sustainability, stakeholders are interested in screening companies on both financial and...

We examine the practices of various international rating agencies and develop a framework based on the auditor independence model to examine the acceptability of various rating agency methodologies. Rating agencies methodologies are classified as solicited, unsolicited or co-operative depending...