Rating agencies defend issuer-pays model during UK hearing

Top representatives of the major credit rating agencies defended their 'issuer-pay' business models from questions over conflicts of interest and their ability to rate structured, banking and other credits during a Treasury Select Committee hearing in the UK parliament in January.

But they accepted that "assumptions" they had made over the future performance of RMBS and CDO securities had been incorrect.

Ian Bell, head of European structured finance at S&P, said: "When you look at the ratings of t

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: