New Approaches to Regulating the Activities of Rating Agencies: A Comparative Analysis

Rating agencies have become an important part of the global financial landscape. Formation of credit ratings is specified by the inherent asymmetry of financial market information and general interest in the transformation of a large amount of diverse and segmented financial information in a simple and clear assessment of the credit surveillance of borrowers that is credit rating. The world financial crisis started in 2008 has again put on the agenda the question of rating assessment accuracy and the factors influencing the rating migration. The activity of rating agencies, until recently, has had little regulation, allowing rating agencies to avoid responsibility for inaccuracies in assigned ratings, while investors were suffering huge losses. Therefore there is an actual question of trust in a rating assessment and the necessity of introduction of elements of control.