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Credit Rating Agencies And Their Influence On Crisis

Author

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  • Petris Sorina Ioana

    (Facultatea de Stiinte Economice, Universitatea din Oradea)

Abstract

Credit ratings have a significant impact on the functioning of markets and the confidence of investors and consumers, investors using them to assess credit risk. Having a major role in the proper functioning of financial markets, it is vital for these rating agencies to operate in a manner more objective and credible as possible. In the world there are several rating agencies, but in reality counts only 3 (The Big Three): Moody's, Standard & Poor's and Fitch, who account for almost 95% of the market. Rating agencies have been the subject of intense criticism because of the role they have had in the trigger of financial crisis. Given that the major rating agencies are American, the U.S. having a particular interest in the euro area can raise the question whether this wave of downgrades is not a part of the scenario under which the U.S. has managed to export its own crisis around the world.

Suggested Citation

  • Petris Sorina Ioana, 2014. "Credit Rating Agencies And Their Influence On Crisis," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(2), pages 271-278, December.
    • Handle: RePEc:ora:journl:v:2:y:2014:i:2:p:271-278
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    File URL: http://anale.steconomiceuoradea.ro/volume/2014/n2/031.pdf
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    References listed on IDEAS

    as
    1. Jakob De Haan & Fabian Amtenbrink, 2011. "Credit Rating Agencies," Chapters, in: Sylvester Eijffinger & Donato Masciandaro (ed.), Handbook of Central Banking, Financial Regulation and Supervision, chapter 19, Edward Elgar Publishing.
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    Cited by:

    1. Jaime A. Teixeira da Silva & Daniel J. Dunleavy & Mina Moradzadeh & Joshua Eykens, 2021. "A credit-like rating system to determine the legitimacy of scientific journals and publishers," Scientometrics, Springer;Akadémiai Kiadó, vol. 126(10), pages 8589-8616, October.

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    More about this item

    Keywords

    credit rating agencies; rating scores; crisis; sovereign risk; investment.;
    All these keywords.

    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

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