What are Credit Ratings For?
May 25, 2010 at 04:52 AM EDT
Why do we have credit ratings? What are the main reasons they exist? To provide profits to those that rate credit. To provide credit standards for regulators and creditors (shame on you, do your homework) that can’t judge credit risk. To allow debtors to easily issue debt; simplifying the pricing decisions of creditors. Providing quantitative and qualitative analyses [...]