Abstract
Purpose – This paper presents the statistical distribution of credit ratings and their migration in Israel, and shows that for 16 years the distribution of ranks has been skewed to the left. The purpose of this paper is to analyze why firms with average quality debt have not changed their tactics and consent to publishing their grade which would then differentiate an average quality debt from a riskier one.Design/methodology/approach – The paper estimates the mean values of ranks and the diagonal of the migration matrix on the basis of data on 1,639 bond rankings listed on the Tel‐Aviv Stock Exchange and publications by the largest Israeli rating agency, Maalot.Findings – From 1992 to 2004, one‐third of the Israeli firms that had initially requested ranking from a rating agency decided to prevent publication. The findings show the average bond rankings published by Israeli rating agencies tend to be relatively high, while bond rating migration is relatively slow. There was no change in the shape of the st...
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
