{"id":1119,"date":"2018-08-24T16:54:20","date_gmt":"2018-08-24T20:54:20","guid":{"rendered":"http:\/\/www.kaikaichen.com\/?p=1119"},"modified":"2020-10-11T00:42:17","modified_gmt":"2020-10-11T04:42:17","slug":"the-calculation-of-average-credit-rating","status":"publish","type":"post","link":"https:\/\/www.kaichen.work\/?p=1119","title":{"rendered":"The calculation of average credit rating using ratings from three rating agencies"},"content":{"rendered":"<p>I was doing something in Finance and wanted to calculate the average rounded credit rating. Basically, I need to translate textual grades (e.g., AAA, Baa) to a numerical value. I found a clue in the following paper:<\/p>\n<p class=\"p1\">Becker, B., and T. Milbourn. 2011. How did increased competition affect credit ratings? <i>Journal of Financial Economics<\/i> 101 (3):493-514.<\/p>\n<p>See their Table 2 for an overview of the ratings levels for the three main rating agencies and the numerical value assignments used in their empirical work.<\/p>\n<p><a href=\"http:\/\/kaichen.work\/wp-content\/uploads\/2018\/08\/creditrating.png\"><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-1121\" src=\"http:\/\/kaichen.work\/wp-content\/uploads\/2018\/08\/creditrating.png\" alt=\"\" width=\"1268\" height=\"748\" srcset=\"https:\/\/www.kaichen.work\/wp-content\/uploads\/2018\/08\/creditrating.png 1268w, https:\/\/www.kaichen.work\/wp-content\/uploads\/2018\/08\/creditrating-300x177.png 300w, https:\/\/www.kaichen.work\/wp-content\/uploads\/2018\/08\/creditrating-768x453.png 768w, https:\/\/www.kaichen.work\/wp-content\/uploads\/2018\/08\/creditrating-1024x604.png 1024w\" sizes=\"(max-width: 1268px) 100vw, 1268px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I was doing something in Finance and wanted to calculate the average rounded credit rating. Basically, I need to translate textual grades (e.g., AAA, Baa) to a numerical value. I found a clue in the following paper: Becker, B., and &hellip; <a href=\"https:\/\/www.kaichen.work\/?p=1119\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"_links":{"self":[{"href":"https:\/\/www.kaichen.work\/index.php?rest_route=\/wp\/v2\/posts\/1119"}],"collection":[{"href":"https:\/\/www.kaichen.work\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.kaichen.work\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.kaichen.work\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.kaichen.work\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1119"}],"version-history":[{"count":8,"href":"https:\/\/www.kaichen.work\/index.php?rest_route=\/wp\/v2\/posts\/1119\/revisions"}],"predecessor-version":[{"id":1473,"href":"https:\/\/www.kaichen.work\/index.php?rest_route=\/wp\/v2\/posts\/1119\/revisions\/1473"}],"wp:attachment":[{"href":"https:\/\/www.kaichen.work\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1119"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.kaichen.work\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1119"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.kaichen.work\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1119"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}