Credit Ratings
About the Lecture
The lecture Credit Ratings by Edu Pristine is from the course Archiv - Valuation and Risk Models. It contains the following chapters:
- External Credit Ratings
- The Credit Rating Process
- Transition Matrices
- Impact of Time Horizon and Economic Cycle
- Impact on Rating Changes on Bond and Stock Prices
- Internal Credit Ratings
- Internal Ratings
- Biases in a Rating System
Author of lecture Credit Ratings
Edu Pristine
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Excerpts from the accompanying material
... Ratings Issue Specific Credit Rating – Conveys information about specific instrument ...
... in that particular field of business medium safe investment. Occurs often when economy has deteriorated. Problems may arise speculative investment. Occurs often in deteriorated circumstances, usually problematic to predict future development. Deteriorating situation expected Bankruptcy or lasting inability to make payments most likely. The ratings from Aa to Ca by Moody's may be modified by the addition of a ...
... 2.Quantitative Analysis 3.Meeting the firm’s management 4.Committee in the credit rating agency meets to assign the ...
... chances of default given any rating at the beginning of a cycle increases with the time horizon ...
... increase the price of the bond. A rating downgrade is likely to decrease the price of the stock ...
... Through-The-Cycle (TTC) – Captures the credit-worthi ness over a larger period of time, including the impact ...
... a time of 10 to 18 years required to validate an internal rating system. APT will have pro-cyclicality if they stick to PD but ...
