A Study on Rating Worthiness of Credit Rating Agencies

Credit rating agencies play very important role in financial market. Many investors’ decisions are based on their ratings. Many crises have witness that there is some serious issue with these rating agencies. If all the rating agencies are performing the same task, then why firm purchase multiple credit ratings. Lack of accountability, Lack of regulation, multiple regulation bodies and conflict of interest are the main problem with these agencies. This paper is an attempt to high light some of the problem with these agencies and some relevant cases also. Keywords: Credit rating, Rating downgrade, Conflict of interest, regulation, accountability. Introduction