RT Journal Article
SR Electronic
T1 The Impact of a Third Credit Rating on the Pricing of Bonds
JF The Journal of Fixed Income
FD Institutional Investor Journals
SP 69
OP 85
DO 10.3905/jfi.2000.319275
VO 10
IS 3
A1 Jeff Jewell
A1 Miles B Livingston
YR 2000
UL https://pm-research.com/content/10/3/69.abstract
AB This article updates a study that looks at the impact of a third rating from Fitch IBCA on bond prices; it examines the impact on prices of a rating from Duff & Phelps Credit Rating Co. The empirical evidence indicates that a third credit rating from either DCR or Fitch has value to the bond market. When there is a third rating, upgrades by Moody's and Standard & Poor's are more likely and downgrades less likely. Third ratings also have an incremental impact upon bond yields.