On The Informativeness of Credit Watch Placements

• Main Authors: CHIYACHANTANA, Chiraphol New, Chakravarty, Sugato, Lee, Yen Teik
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2011
• Subjects: credit rating agency; credit watch; bond rating; abnormal returns; institutional trading; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/3049; https://ssrn.com/abstract=1252542
• Institution: Singapore Management University

This study examines the informational role of credit watch placements in the overall bond rating process. We show that the act of a company’s bond being put on a credit watch is, in itself, associated with significant abnormal returns in the company’s stock and bond rating revision that are associat...