Columbia Study Finds Private Credit Ratings Inflated, Masking Risk

Inflated ‘Private’ Ratings Are Masking Credit Risk, Columbia Study Says

A Columbia study has found that private credit ratings are inflated and not accurately reflecting the true credit risk of investments. The inflated ratings are masking underlying credit risk, according to the research. This suggests that private credit ratings may be overstating the creditworthiness of borrowers or debt instruments.