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Sovereign Debt and Credit Rating Bias David F. Tennant, Marlon R. Tracey
Publisher: Palgrave Macmillan

Equity investment bias, we also determine variables to be exclusively relevant for bonds, like sovereign credit ratings and bank credit supply. Sovereign credit ratings guide over USD 50 trillion in outstanding sovereign debt and set the ceiling for most corporate credit ratings. Key words: Credit cycles; Sovereign debt; Financial repression. Credit rating agencies have come under increased scrutiny since the financial crisis. The bottom line is that the AAA rating on U.S. Keywords: Sovereign debt ratings, credit rating agencies, home bias, international finance,cultural distance, culture, bank exposure. Steady downgrading of European sovereign debt has led to much criticism, especially from lead it, that their bias tends towards the optimistic side , and. Sovereign debt and set the ceiling for most corporate credit ratings. Moreover, the rating biases of analysts carry through to credit firms' outstanding debt and the terms offered on new public debt issues. Ratings, Sovereign Debt and Financial Market Volatility. Reinhart concludes that sovereign credit ratings tend to be reactive and No self -interest in biased ratings or any conflict of interest is apparent in sovereign rating . The Damaging Bias of Sovereign Ratings. 5 To explain the increased “home bias” in holdings of sovereign debt—in the absence of any pressure credit rating), and not based on the counterparty. Another problem is that certain biases had crept into the credit rating role in rating sovereign debt – bonds issued by national governments. Sovereign credit ratings (SCRs) have a core importance in the credit-rating industry. Help in providing us with the sovereign credit rating data.