Reputation mechanism

Operational Problems of Rating Agencies

Introduction It is sufficient to consider even their nature as profit organizations to recognize that there are a series of inconsistencies between the Rating Agencies and the role they are called upon to play. Unfortunately, there are numerous “congenital” errors in the nature of the Agencies, which, especially during periods of economic downturn, have been

Rating Assignment Procedures

The Mechanism Behind Rating Assignment

Introduction The process of assigning the Rating takes place according to a time schedule with phases apparently identical for all the Agencies. The substantial differences mainly concern the mere formal expression of judgment. The process of Rating can start via different procedures: Stimulus by an entity requesting the assignment of a credit Rating for its

post rating criteria

Comparative Analysis of The Evaluation Systems Used by The Main Rating Agencies in The World

Introduction First and foremost, what is a rating agency? Let’s say you want to lend a company some money and get the profit back out of it. You lend that money by buying bonds, which are debt instruments created for the purpose of raising capital, indicating the amount lent, the runtime and the interest rate