Issuer Assessments of Credit Rating Agencies by Investment Grade

Abstract

The authors examine the views of investment and non-investment grade industrial bond issuers about the four leading U.S. credit rating agencies. The issuers differ significantly in their attitudes about the rating agencies. While respondents are generally satisfied with the performance of credit rating agencies, their level of satisfaction is higher for S&P than for Moody's. The results have implications for bond market participants who rely on credit ratings for corporate financing, investment decisions, and risk management.