Rating Agencies and Their Role in the Structured Finance Instruments Market

Abstract

Rating agencies were discredited with the beginning of global financial crisis of 2008-2009. The failures of credit rating agencies during the market crisis had been the subject of several forums and economic conferences, also motivating a number of potential regulatory proposals. This paper examines actual problems relating to rating agencies activity, mainly discussing changes in regulation process. Author summarizes main drawbacks of rating agencies and suggests possible ways of mitigating them.