Standard & Poor’s pledges to reform the credit rating process

Daily news headlines

NEW YORK – Ratings agency Standard & Poor’s (S&P) has announced plans to reform its credit ratings process, providing improved strength, transparency, and independence.

Credit rating agencies (CRAs) have been at the centre of increased market and regulatory pressure as their mark-to-market ratings were subject to damaging fluctuations due to the subprime crisis and following credit crunch.

S&P aims to address the challenges facing rating agencies through reform of its governance policies, and the analysis and development of credit rating models. It plans to do this in addition to efforts towards improving education and information to increase transparency, market understanding and, ultimately, investor confidence.

“The ongoing transformation of the financial markets requires us to continue to bring more innovative thinking, greater resources, and improved analytics to the ratings process,” says Deven Sharma, president of S&P.

“By further enhancing independence, strengthening the ratings process, and increasing transparency, the actions we are taking will serve the public interest by building greater confidence in credit ratings and supporting the efficient operation of the global credit markets,” said Sharma.

  • LinkedIn  
  • Save this article
  • Print this page  

You must be signed in to use this feature.

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: