Thus, blindly allowing inexperienced and incompetent credit rating agencies to operate would consequently lead to myriads of cases of defunct ratings in the future. Chris Atkins, Vice President, Corporate Communications, S&P, bemoans, “This would result in the diminishing of overall ratings quality, as the process will not ensure that these agencies are sufficiently qualified to perform up to market demand.” Atkins further comments, “The bill would enable the SEC to exert undue influence in the ratings process, leading to a potential chilling effect on ratings.”
For complete IIPM article click here
Source:- IIPM Editorial, 2006
Editor:- Prof. Arindam Chaudhuri
For complete IIPM article click here
Source:- IIPM Editorial, 2006
Editor:- Prof. Arindam Chaudhuri
