Credit rating agencies' caution reshapes bond spreads of peripheral euro countries.
The article explores how credit ratings and bond spreads of certain European countries changed between 1995 and 2014. It found that even though bond spreads decreased rapidly after 2012, credit ratings stayed mostly the same. This suggests that credit rating agencies have become more careful in assessing the credit risk of these countries. The impact of credit ratings on bond spreads has also shifted during this time period.