Regulation of Credit Rating Agencies - Different Views and Solutions

Dimitar Rafailov ()
Additional contact information
Dimitar Rafailov: University of Economics - Varna, Varna, Bulgaria

Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series, 2020, vol. 9, issue 2, 13-22

Abstract: Credit rating agencies are an important element of the informational financial infrastructure, which is essential for the stability of the financial system. In the absence of conflicts of interest and the importance of the established reputation for the rating agencies, self-regulation is sufficient to guarantee high-accuracy ratings. The payment for ratings by issuers and their use in financial regulations create distorted incentives to pursue higher profits at the expense of the quality of ratings. The demonstrated failures of the rating agencies confirm the need for strict regulations to restore investor confidence in the ratings.

Keywords: rating agencies; credit ratings; regulation (search for similar items in EconPapers)
JEL-codes: G24 G28 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://su-varna.org/journal/IJUSV-ESS/2020.9.2/13-22.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vra:journl:v:9:y:2020:i:2:p:13-22

DOI: 10.36997/IJUSV-ESS/2020.9.2.13

Access Statistics for this article

More articles in Izvestia Journal of the Union of Scientists - Varna. Economic Sciences Series from Union of Scientists - Varna, Economic Sciences Section Contact information at EDIRC.
Bibliographic data for series maintained by Pavel Petrov ().