The Changing Landscape For Credit Rating Agencies

Law360, New York (February 3, 2010, 11:26 AM EST) -- Credit rating agencies have long played an influential role in the capital and credit markets. Both issuers and investors find credit ratings extremely useful. For issuers, favorable ratings make it easier to sell debt instruments; many institutional investors are limited to investing in only those instruments carrying high ratings.

For investors, agency ratings have become a widely accepted, common yardstick for valuing potential investments. Many investors rely heavily on agency ratings when making investment decisions.

Rating agencies have become so deeply embedded in the capital markets...
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