Large Banks Win Higher Credit Ratings

ECB study says rating agencies are 'conflicted' because of the business they get from banks.

Big banks are awarded higher grades from ratings firms because the lenders provide them with business including evaluating securitized debt, according to a European Central Bank study.

Larger financial institutions were more likely to receive better grades, according to the research report, which reviewed about 39,000 quarterly bank ratings from Standard & Poor’s, Moody’s Investors Service and Fitch Ratings from 1990 to 2011.

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