# Prof. Lawrence White on credit rating downgrades

1 Faculty News February 17, 2012 ![](/sites/default/files/styles/246w/public/assets/images/con_030601.jpg?itok=GeJte3i1)>

Excerpt from [Bloomberg Businessweek](http://www.businessweek.com/finance/why-credit-ratings-matter-02172012.html) -- "'The difference between AAA and AA+ is comparatively small, but B and B- would be bigger.' Downgrades are particularly costly for banks, [White](http://w4.stern.nyu.edu/faculty/bio/lawrence-white) says, because they borrow much more frequently than non-financial corporations."

[Read more](http://www.businessweek.com/finance/why-credit-ratings-matter-02172012.html)