Credit rating agencies
Rating agencies defend subprime role before Congress
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The bigger picture
In 2003, rating agencies considered operational risk as a separate risk category, but quantification problems have prompted them to take an integrated, enterprise risk management approach.
Credit rating agencies under scrutiny again
Daily news headlines
S&P warns on Pillar 2 implementation
S&P says major banks may be falling short on Pillar II implementation
CESR progresses on GAAP of third countries policy
Committee of European Securities Regulators advances on two fronts
Broken joints
Moody's Investors Service's determination to change its rating approach, and its subsequent decision to revise its controversial joint default analysis methodology, has left the agency's reputation in tatters.
All in the mind
The number of op risk patent applications filed in the US has soared. Duncan Wood investigates the efforts being made to protect intellectual property
CESR out with CRA / IOSCO code comparison
CESR has published its first report on the compliance of the credit rating agencies in relation to the IOSCO code.
Credit ratings will become problematic in the Asian bond markets under Basel II
The revised accord will increase the need for a regional credit rating system.
ECAIs fulfil Basel II requirements
Three external credit assessment institutions (ECAIs) have met Basel II requirements and are now eligible to provide ratings for regulatory capital purposes and mapping credit assessment.
UK FSA publishes implementation bulletin for the CRD
The Financial Services Authority (FSA) in the UK has published issue three of its Capital Requirements Directive (CRD) implementation bulletin for investment firms, banks and building societies.
The great rating debate
A conference in Paris exposed some criticism of the way the rating agencies function. Issuers and investors feel the industry suffers from a lack of competition which has harmed service levels. Sarfraz Thind reports
S&P revamps RatingsDirect
Standard & Poor's, the New York-based ratings agency, has introduced an updated RatingsDirect, its research and risk analysis tool that provides real-time online credit ratings for investment professionals.
Filling the ratings void
Unlike bond investors, structured products investors lack the benefit of industry-standard risk ratings. But with investors, IFAs and distributors all demanding change, Germany's investment banking industry, analytic firms and ratings agencies across…
Economic capital blues
Rating agencies and life insurers have not always got on, with squabbles over how to account for diversification across business lines a prime reason. But could the rise of economic capital management put an end to the arguing?
What has op risk to do with ‘credit’ ratings?
How should credit rating agencies include op risk in their assessment of firms’ creditworthiness? By Choongo Moonga
Modelling counterparty credit exposure for credit default swaps
Modelling counterparty credit exposure for credit derivatives is more complicated than for non-credit products, since the reference credit and counterparty can exhibit positive default correlation. Here, Christian Hille, John Ring and Hideki Shimamoto…
Proposed conduct code for creditratings agencies draws criticism
“Fairly or not, rating agencies have been in the spotlight in the wake of recent high-profile corporate scandals,” said David Knott, chairman of the International Organisation of Securities Commissions’ (Iosco) technical committee in September 2003 when…
Unlocking the rating process
The credit rating agencies are often criticized for a lack of transparency in their rating methodology. But as John Caserta reports, the agencies are taking steps to shed light on this often mysterious process and, in doing so, rebuild investor…
EU calls for review of credit rating agencies
The European Commission has called for a review by the Committee of European Securities Regulators (CESR) of credit rating agencies, amid renewed activity on both sides of the Atlantic on the credit rating agency regulatory debate. Also, according to…
Behind closed doors
The method used by rating agencies to determine rating actions has often been portrayed as a shadowy and secretive process. Nancy Stroker tries to shed some light on the matter.
Rating reform
The winds of change that have been forecast to sweep through the credit rating industry are growing stronger, fanned by a set of proposals released by an influential group of finance and treasury bodies, as Saskia Scholtes reports.
Taking on the big boys
Sean Egan, co-founder of Egan-Jones Ratings, talks to Dalia Fahmy about his frustration at the restrictive structure of the credit rating industry and his plans to turn Egan-Jones into a serious contender to rival established players, Moody's, S&P and…
Trade bodies back credit rating agency reforms
Washington, DC - Several financial industry trade associations are supporting reforms to the recognition of credit rating agencies in the US.