DEMYSTIFYING the Rating Agencies

Sagner, James S.
June 2003
Financial Executive;Jun2003, Vol. 19 Issue 4, p22
Academic Journal
The article focuses on the role of credit rating agencies in the recent business failures of Enron Corp., WorldCom Inc., and other business scandals. It mentions that rating agencies are an important element of global financial systems but there is little information available on just how these agencies function. It mentions that credit ratings are established by a small group of people using confidential processes. It mentions that the U.S. Securities and Exchange Commission is reviewing the function of credit rating agencies. INSET: Working Within The Structure.


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