ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Regulation of Credit Rating Agencies: New Business Models or Stringent Regulatory Use?

The role of credit rating agencies in the US credit crisis by transferring risks through new structured products has attracted much attention, especially since rating downgrades of these products were much faster than the other products. Improved disclosures in rating methodologies and the performance of rating models, avoiding conflict of interest situations, relevance of issuer to pay models and dealing with the oligopolistic nature of the industry are some of the lines along which new regulatory efforts could be organised. A clear articulation of the conditions for the use of ratings of "new" products by different investor classes may improve regulatory efficiency.

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