The governance of credit rating agencies: regulatory regimes and liability issues

The book looks at the governance of ratings in connection with the liability of CRAs in the financial markets, and the implications of CRAs’ activities for regulators and investors. Particular emphasis is devoted to the CRAs’ business model, underlying the potential collusive behavior between issuers and raters. Further, it addresses the issues of inaccurate ratings methodologies, conflicts of interest and CRAs’ ownership, since all these issues raised concerns about the lack of transparency and limited competition in the ratings industry.