Demystifying the rating agencies.

Financial ExecutiveVol. 19 Nbr. 4, June 2003

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Credit Ratings - Related article: Working Within the Structure

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Demystifying the rating agencies.

The focus on recent corporate scandals has also brought congressional attention to--and scrutiny of--the inner workings, the power and the role of the credit rating agencies.

Where were the rating agencies? Since the widely publicized failures of Enron Corp., WorldCom Inc. and others, there has been a public outcry--fueled by the press--for a re-examination of the role of credit rating agencies. This raises a basic curiosity: While the functioning of rating agencies has become ...

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