Ratings can still sharpen credit risk picture

Study shows even the most modern default models benefit from adding credit rating information

Television static

The shortcomings of credit ratings are well known. Like the fuzzy screen of an old TV set, they give an impression of what’s going on, but lack reliability. Now, new research suggests that combining ratings with public financial information can get you a much clearer picture.

Credit ratings are clearly imperfect. The 2008 crisis notoriously revealed their vulnerability to commercial influence, and recent research highlighted their tendency to be ‘sticky’ just above the point of a downgrade to

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: