Rating Agencies

Abstract

This chapter attempts to capture the global regulatory response initiated against rating agencies in the aftermath of the Global Financial Crisis, and its implication on the rating industry. Section II starts with an outline of the role and influence of rating agencies in the financial market, and attempts to understand their role in the financial debacle. Section III examines the emerging regulatory and supervisory framework for rating agencies. Section IV provides special focus on the emerging civil liability regime from a historical perspective. Emphasis shall be placed on the practices and regulatory interventions in the US and the Europe as they have set a trend followed by other countries.