02203cas a2200325 a 4500 AALejournalIMF022950 230101c9999 xx r poo 0 0eng d 20.00 USD 9798400211980 1018-5941 BD-DhAAL BD-DhAAL Abidi, Nordine. Quantitative Easing and Credit Rating Agencies / Nordine Abidi, Matteo Falagiarda, Ixart Miquel-Flores. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (93 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates the behaviour of credit rating agencies using a natural experiment in monetary policy. We exploit the corporate QE of the Eurosystem and its rating-based specific design which generates exogenous variation in the probability for a bond of becoming eligible for outright purchases. We show that after the launch of the policy, rating activity was concentrated precisely on the territory where the incentives of market participants are expected to be more sensitive to the policy design. Our findings contribute to better assessing the consequences of the explicit reliance on CRAs ratings by central banks when designing monetary policy. They also support the Covid-19 monetary stimulus, and in particular the waiver of private credit rating eligibility requirements applied to recently downgraded issuers. Mode of access: Internet Central Banks and Their Policies imf Financial Markets and the Macroeconomy imf Investment Banking imf Monetary Policy imf Venture Capital imf Falagiarda, Matteo. Miquel-Flores, Ixart.. IMF Working Papers; Working Paper ; No. 2022/113 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=113 IMF e-Library