Abstract
Studies have shown that when two information providers or outside auditors exist, the value provided by the second one will be decreased by the actions of the first. Capitalizing on the highly similar functions performed by banks and rating agencies, this paper examines the informational value of the credit ratings of bank loans. Further, it provides evidence on whether rating agencies duplicate the certifying and monitoring roles played by banks. The significant market reaction to negative credit rating announcements found suggests that these rating actions convey information to the capital market beyond that provided via the bank loan approval and renewal process.