Blessing or Curse? The Effects of Credit Rating Standard Loosening in China
研究发现2006至2020年中国发行人付费评级机构大幅放松评级标准，平均评级上升1.73个等级；放松评级虽降低融资成本、增加借贷，但企业主要用于债务展期和增持现金，而非投资或研发，最终导致盈利下降和违约风险上升。
ABSTRACT We document a substantial loosening of credit ratings by Chinese issuer‐paid rating agencies from 2006 to 2020. Controlling for firm fundamentals, average ratings rose by 1.73 notches. Although looser ratings lower bond financing costs and support greater borrowing, firms mainly use the proceeds to roll over debt and increase cash holdings rather than to expand investment or research and development (R&D). These firms subsequently show lower profitability and higher default risk, challenging the view that lenient ratings improve performance by easing financing constraints. We identify rating‐contingent regulations and conflicts of interest in the issuer‐pay business model as key drivers of rating loosening, highlighting structural distortions in China's credit market.