This study aims to examine the relationship between a borrower's credit rating and the structure of a syndicated loan. A syndicated loan is a type of loan that is provided by a group of lenders, rather than just one. The study used data on 5,106 syndicated loans that were initiated between 1996 and 2017. The findings showed that borrowers with a higher credit rating were more likely to attract more lenders to provide financing. Additionally, when the borrower had a poor credit rating, the lead arranger (the bank that coordinates the syndicated loan) tended to hold a larger proportion of the loan compared to when the borrower had a good credit rating. Overall, the findings of this study indicate that the credit rating of a borrower can significantly influence the structure of a syndicated loan by reducing potential conflicts of interest between the lead banks and other participating lenders.
Ahmed, Mahmoud. (2024). Assessing the Influence of Standard & Poor's on Loan Syndication in the Financial Market. المجلة العلمية للدراسات والبحوث المالية والتجارية, 5(1), 31-68. doi: 10.21608/cfdj.2024.324083
MLA
Mahmoud Ahmed. "Assessing the Influence of Standard & Poor's on Loan Syndication in the Financial Market". المجلة العلمية للدراسات والبحوث المالية والتجارية, 5, 1, 2024, 31-68. doi: 10.21608/cfdj.2024.324083
HARVARD
Ahmed, Mahmoud. (2024). 'Assessing the Influence of Standard & Poor's on Loan Syndication in the Financial Market', المجلة العلمية للدراسات والبحوث المالية والتجارية, 5(1), pp. 31-68. doi: 10.21608/cfdj.2024.324083
VANCOUVER
Ahmed, Mahmoud. Assessing the Influence of Standard & Poor's on Loan Syndication in the Financial Market. المجلة العلمية للدراسات والبحوث المالية والتجارية, 2024; 5(1): 31-68. doi: 10.21608/cfdj.2024.324083