Credit rating agencies (CRAs) play an integral part in today's financial markets. Through ratings they express considered opinion about future creditworthiness of an obligor and thus lower information asymmetry in the capital markets. Recently, CRAs have been brought in the spotlight as they are often blamed for being the triggers of the recent market turmoil. Critics often argue that ratings of tranches of structured finance instruments, backed by subprime mortgages, were unjustifiably high, downgrades were too late and the overall integrity of the rating process was compromised through numerous conflicts of interests CRAs face. However, in this thesis I argue that CRAs were put in this position rather through external factors than their own actions. Massive regulation usage of ratings, rapid growth of structured securities market, overdependence on the rating and the overall ignorance of the meaning of rating itself are the actual causes to blame.
| Identifer | oai:union.ndltd.org:nusl.cz/oai:invenio.nusl.cz:74200 |
| Date | January 2010 |
| Creators | Kotková, Jana |
| Contributors | Kalínská, Emílie, Čajka, Radek |
| Publisher | Vysoká škola ekonomická v Praze |
| Source Sets | Czech ETDs |
| Language | Czech |
| Detected Language | English |
| Type | info:eu-repo/semantics/masterThesis |
| Rights | info:eu-repo/semantics/restrictedAccess |
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