Tag Archives: credit rating

Juanjuan Zhang on microlending websites: a poor credit rating can mean a successful loan

When a bank considers a loan, it looks at the borrower’s income, assets, credit history, and plans for the money. On microloan websites, lenders have one other way to evaluate a borrower’s creditworthiness. They can observe the behavior of other lenders. With a colleague, Peng Liu of Cornell University, I have been studying Prosper.com, the […]

After the Debt Ceiling Debate and S & P’s Credit Downgrade, Picking an Investment Adviser in an Unruly Market: S.P. Kothari

    From Dow Jones Marketwatch S.P. Kothari, deputy dean at the MIT Sloan School of Management and a former Barclays fund manager, talks about what investors should look for in choosing an investment adviser to steer them through these turbulent markets. What do you think?

Why a rating agency should be concerned about the survival of the company it’s assessing

My latest paper* focuses on the difficulties that rating agencies face in setting a credit score that accurately reflects the credit quality of a borrower, but also takes into account the effect that score will have on the borrower’s credit quality in the future. When a rating agency cuts a given company’s credit rating, investor […]