Credit rating agencies play an essential role in the modern financial system and are relied on by creditors and investors on the market. In the recent financial crisis, their power and reliability were often questioned, yet a simple rating downgrade could threaten to bankrupt a whole country.
This book examines the governance of credit rating agencies, as expressed by their ability to fairly, ethically and consistently assign higher rates to issuers having lesser default risks. However, factors such as the drive for increased revenue and market share, the inadequate business model, the inadequate methodology of assessing risk, opacity and inadequate internal monitoring have all been identified as critical governance failures for credit agencies. This book explores these issues, and proposes some potential solutions and improvements.
This will be of interest to researchers and advanced students of corporate finance, finance, financial economics, risk management, investment management, and banking.
- ISBN10 1322878471
- ISBN13 9781322878478
- Publish Date 1 January 2015
- Publish Status Active
- Out of Print 11 March 2015
- Publish Country US
- Imprint Taylor and Francis
- Format eBook
- Pages 253
- Language English