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Are the Ratings Good Indicators of the Creditworthiness of the Entities that Qualify?

  • Carlos Salvador Muñoz
  • José Manuel Pastor
  • Juan Francisco Fernández de Guevara
Part of the Palgrave Macmillan Studies in Banking and Financial Institutions book series (SBFI)

Abstract

A rating is an indicator, normally drawn up by a specialized agency, which measures the solvency of an entity or issue of assets by means of a categorical scale. The ultimate purpose of ratings is to inform other market agents (investors and regulators) regarding the solvency of the entities evaluated and/or of the assets issued. The rating reduces one of the main problems of markets: the asymmetry of information between issuers and other agents, since the latter do not have access to all the information relating to the solvency of the entity that is being rated (Losada, 2009).

Keywords

Rating Agency Total Asset Credit Rating Fourth Quarter Saving Bank 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Carlos Salvador Muñoz, José Manuel Pastor and Juan Francisco Fernández de Guevara 2011

Authors and Affiliations

  • Carlos Salvador Muñoz
  • José Manuel Pastor
  • Juan Francisco Fernández de Guevara

There are no affiliations available

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