No easy alternatives to credit ratings
Ratings on financial products made by the big three agencies - Moody's, Fitch and Standard & Poor's - have played a central role in the assessment of risk and capital requirements, most famously in Basel II (it appears that they will also play a role in Basel III). They also determine the suitability of various assets for use in central banks' open market operations.
Ratings have become hardwired into financial rules, giving the big three nothing short of an official stamp of approval. Rating
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