The role of rating agencies in international financial market
In the context of financial markets globalization, the role of rating agencies and credit ratings expanded sharply. Standard & Poor’s awarded in the late 70’s ratings only for 12 countries and currently it assigned ratings for 129 countries. Global rating agencies Standard & Poor’s, Moody’s...
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| Format: | Article |
| Language: | English |
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General Association of Economists from Romania
2015-03-01
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| Series: | Theoretical and Applied Economics |
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| Online Access: |
http://store.ectap.ro/articole/1068.pdf
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| Summary: | In the context of financial markets globalization, the role of rating agencies and
credit ratings expanded sharply. Standard & Poor’s awarded in the late 70’s ratings only
for 12 countries and currently it assigned ratings for 129 countries. Global rating agencies
Standard & Poor’s, Moody’s and Fitch publish long term sovereign ratings and short term
sovereign ratings. The role of sovereign ratings is the decrease of informational asymmetry
between borrowers (countries) – acting as issuers and lenders – acting as investors. In this
paper I will analyse sovereign rating definition and I will explain the importance of rating
agencies. |
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| ISSN: | 1841-8678 1844-0029 |