The industry of credit rating agencies

Abstract EN

This paper develops a theoretical framework to shed light on the credit rating industry.

Who the industry's firms are; what do they do; how they do it; and what the implications of their activities are? Since their creation rating agencies provide information to investors and governments helping them to make right and accurate decisions.

Despite their major role, rating agencies have been accused of contributing in the creation of the worldwide financial crisis of 07-2008, and led to investigate why rating agencies didn't send early warning signals, to avoid the worst, before the bubble bursts.

Other critics made of them will be explored in this article.