Addicted to Ratings: The Case for Reducing Governments’ Reliance on Credit Ratings

Philippe Bergevin
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Philippe Bergevin: C.D. Howe Institute

C.D. Howe Institute Backgrounder, 2010, issue 130

Abstract: Credit rating agencies have been blamed for their role in the recent financial crisis, notably for having assigned high ratings to complex financial instruments that yielded billions in losses to investors. As a consequence, a number of reforms have been proposed or introduced – including for example increased disclosure of rating methodologies. This Backgrounder argues that reducing the government use of credit ratings may be the single most important step towards restoring the credibility and integrity of rating agencies.

Keywords: Financial Services; credit-rating agencies (CRAs); third party credit risk assessment; nationally recognized statistical rating organizations (NRSROs) (search for similar items in EconPapers)
JEL-codes: G11 G12 G24 G28 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:cdh:backgr:130

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